Identifying absorption and variable costing information A partial list of sales and cost data is presented below for the Creede Manufacturing Company.

The beginning inventory in Year 2 is 12,000 units with variable manufacturing costs of $37 per unit. The fixed manufacturing overhead costs in Year 1 were $500,000, and normal capacity is 50,000 units (50 gallon drums) a year. FIFO inventory is used.

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Sales (18,000 units).. Manufacturing costs: Prime cost.... Variable MOH Budgeted and actual fixed MOH. Operating expenses: Variable selling expense Fixed selling expense Fixed administrative $630,000 252,000 84,000 100,000 54,000 45,000 90,000 During the year 21,000 units were produced, which is 1,000 more than normal capacity. There were 4,000 units in beginning inventory with a variable manufacturing cost of $15 per unit. Fixed MOH included in the beginning inventory was $4.50 per unit. The company uses FIFO inventory. REQUIRED a. Determine the number of units in ending inventory. b. Determine the cost of ending inventory using absorption costing. c. Determine the cost of ending inventory using variable costing. d. Determine the company's gross margin on sales percentage. e. Determine the company's contribution margin as a percentage of sales. f. Determine the company's total manufacturing contribution margin. g. Determine the difference in net income between the two costing methods.