Bob's Manufacturing provides you with the following information for the most recent month of operations:

Units in beginning inventory 0

Units produced 2,000

Units sold 1,600

Selling price $50 per unit

Fixed manufacturing costs $24,000

Fixed selling and administrative costs $10,000

Variable manufacturing costs $16 per unit

Variable selling and administrative costs $6 per unit:

a. What is Bob's reported income and cost of ending inventory under variable costing?

b. What is Bob's reported income and cost of ending inventory under absorption costing? Assume Bob allocates cost using units produced.

c. Reconcile the difference between Bob's income under variable costing and absorption costing