11.6 On-Road Wheels, Inc. manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory): Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Selling price Production Sales Instructions $100 per bike $400,000 $22 per bike $550,000 $200 per bike 20,000 bikes 18,000 bikes (a) Prepare a brief income statement using absorption costing. (b) Compute the amount to be reported for inventory in the year-end absorption costing balance sheet.