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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 $10.00 Variable overhead $1.00 Variable selling expenses $2.00 Fixed costs per year Fixed overhead $200,000 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 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 2.000 3a. Assume the selling price per unit is $30. Prepare an income statement using variable costing. Vladamir, Inc. Variable-Costing Income Statement For Last Year Less: Contribution margin Less: DJ DJ Operating income 3b. Assume the selling price per unit is $30. Prepare an income statement using absorption costing. Vladamir, Inc. Absorption-Costing Income Statement For Last Year Gross profit Operating income