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

Beginning inventory, units ............—

Units produced ................60,000

Units sold ...................57,400

Variable costs per unit:

Direct materials .................$9.00

Direct labor ...................6.50

Variable overhead ................$3.60

Variable selling expenses .............$3.00

Fixed costs per year:

Fixed overhead ..............$234,000

Fixed selling and administrative expenses .....$236,000

There are no work-in-process inventories. Normal activity is 60,000 units. Expected and actual overhead costs are the same.

Required:

1. How many units are in ending inventory?

2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income.

3. Assume the selling price per unit is $32. Prepare an income statement using:

a. Variable costing

b. Absorption costing