2) absorption costing ending inventory. 6. Direct and absorption income computations Crawford Company began operations on January 1 of the current year. The follow- ing information has been gathered from the accounting records: Variable costs per unit Manufacturing: $12.50 Selling & administrative: $1.10 Fixed costs Manufacturing: $120,000 Selling & administrative: $60,000 Production and sales amounted to 80,000 units and 75,000 units, respectively, The selling price is $17. a. Compute net income for the year just ended by using the direct costing method. b. Compute net income for the year just ended by using the absorption costing method