Sparrow Inc. uses absorption costing in a FIFO inventory system. Sparrow had opening inventory of 170 units at a cost of $35 per unit. Ending inventory is 120 units. During 2017 Sparrow sold 1,600 units at $55 each. The following costs apply to Sparrow's operations for the year ended December 31, 2017.

Direct material used in production	$ 12 per unit
Direct labour incurred	5 per unit
Fixed manufacturing overhead	$ 17,050
Variable manufacturing overhead	$ 4 per unit
Selling costs (40% variable)	$ 20,000
Admin costs (10% variable)	$ 30,000

Round to the nearest whole number. Do not use decimals or commas in your answer.

(a) What amounts will be reported on Sparrow's Income Statement for:

Cost of goods sold $?

Gross profit $?

Period costs $?

(b) Sparrow also prepares a variable costing income statement for internal purposes. Assume the fixed manufacturing overhead attached to each unit in beginning inventory was $14 per unit. Will their variable costing net income be higher or lower than under absorption costing and by how much? and low or higher

*you'll have to calculate FMOH released from beginning inventory AND FMOH stored in ending inventory?