(a) Calculate the value of ending inventory on the balance sheet under the following

methods:

(i) Variable costing

(ii) Absorption costing

(b) Calculate operating income under each of the following methods:

(i) Variable costing

(ii) Absorption costing

(c) Estimate the variable costing operating income if 24 220 units were produced and sold

in a year.

Trojan Ltd started operations last year with no inventories. During the year, 21,000 units were produced, of which 18,800 were sold. Data concerning last year's operations appear here: Variable manufacturing costs reflect the variable cost to produce the number of units manufactured. However, variable selling costs are not incurred until the units are sold, so they reflect the cost for the number of units sold. Trojan Ltd allocates actual manufacturing overhead costs to inventory based on actual units produced