bire - Enterpris... W Abbott Laboratori... Southeastern Okl... Other Book HW 0 Saved Help Save & Exit Submit Check my work Easton Pump Company's planned production for the year just ended was 20,000 units. This production level was achieved, and 21,000 units were sold. Other data follow: Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable selling and administrative expenses Finished-goods inventory, January 1 $600,000 300,000 420,000 200,000 350,000 105,000 2,000 units ces The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Easton Pump Company's finished-goods inventory cost on December 31 under the variable-costing method? 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? 1. Finished-goods inventory cost 2- Higher operating income method Variable costing 2- Difference in reported income $ 21,000 b