$9.00 Income Statements, Variable and Absorption Costing The following information pertains to Vladamir, Inc., for last year: Beginning inventory, units 1,400 Units produced 100,000 Units sold 101,000 Variable costs per unit: Direct materials $8.00 Direct labor Variable overhead $1.00 Variable selling expenses $2.00 Fixed costs per year: Fixed overhead $200,000 Fixed selling and administrative expenses $240,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 400 units 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. $ 3,000 x Feedback 3a. Assume the selling price per unit is $30. Prepare an income statement using variable costing. Vladamir, Inc. Variable-Costing Income Statement For Last Year Sales $ 3,030,000 Less: Variable cost of goods sold 2,020,000 x Variable selling expenses 202,000 808,000 X Contribution margin Less: Fixed overhead Fixed selling and administrative expenses 300,000 x 240,000 Operating income 268,000 3b. Assume the selling price per unit is $30. Prepare an income statement using absorption costing. Vladamir, Inc. Absorption-Costing Income Statement For Last Year Sales $ 3,030,000 Less: Cost of goods sold 2,323,000 x 707,000 x Gross profit Less: Selling and administrative expenses 442,000 Operating income 265,000 x