please answer 3a & 3b

Income Statements, Variable and Absorption Costing

The following information pertains to Vladamir, Inc., for last year:

Beginning inventory, units		1,300
Units produced		100,000
Units sold		101,000
Variable costs per unit:
Direct materials		$8.00
Direct labor		$9.00
Variable overhead		$1.00
Variable selling expenses		$2.00
Fixed costs per year:
Fixed overhead		$300,000
Fixed selling and administrative expenses		$240,000

There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next.

Income Statements, Variable and Absorption Costing The following information pertains to Vladamir, Inc., for last year: legger 1.300 Un produced 100.000 Units 100.000 Varico per 00 Director 11.00 Vartengeres 12.00 Feeded 3.300.000 had seting and a 40.000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next Required: 1. How many units are in ending inventory? 300 units 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3.000 3a. Assume the selling price per unit is $32. Prepare an Income statement using variable costing. Vladami, Inc. Variable Costing Income Statement For Last year Yeni Control Le Eikestad Operating home 3b. Assume the selling price per unit is $32. Prenare an 3b. Assume the selling price per unit is $32. Prepare an income statement using absorption costing. Vladamir, Inc. Absorption-Costing Income Statement For Last Year Sales Less: Cost of goods sold Gross profit Less: Selling and administrative expenses Operating income