6. Direct and absorption costing The information that follows pertains to Consumer Products for the year ended December 31, 20X6: 24,000 units Inventory, 1/1/X6 Units manufactured 80,000 Units sold 82,000 Inventory, 12/31/X6 ? units Manufacturing costs: Direct materials Direct labor $3 per unit $5 per unit $9 per unit $280,000 I Variable factory overhead Fixed factory overhead Selling & administrative expenses: Variable $2 per unit $136,000 Fixed The unit selling price is $26. Assume that costs have been stable in recent years. Instructions a. Compute the number of units in the ending inventory. b. Calculate the cost of a unit assuming use of 1) direct costing 2) absorption costing. c. Prepare an income statement for the year ended December 31, 20X6, by using direct costing d. Prepare an income statement for the year ended December 31, 20X6, by using absorption costing