The following information relates to Jorgensen Manufacturing for calendar year 2020, the company’s first year of operation: 

Units produced................................................................8,000 

Units sold..........................................................................7,000 

Selling price per unit....................................................$ 4,500 

Direct material per unit...............................................$ 2,000 

Direct labor per unit....................................................$ 1,200 

Variable manufacturing overhead per unit.................$ 900 

Variable selling cost per unit.........................................$ 225 

Annual fixed manufacturing overhead...................$800,000 

Annual fixed selling and administrative expense..$400,000

Required 

a. Prepare an income statement using full costing. 

b. Prepare an income statement using variable costing. 

c. Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing and reconcile it to the difference between income computed under variable and full costing. 

d. Suppose that the company sold 8,000 units during the year. What would the variable costing net income have been? What would the full costing net income have been?