Crystal Clear Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: January February Unit data Beginning entry 0 100 Production 1,400 1375 Sales 1,300 1375 Variable costs Manufacturing cost per unit produced $ 950 $ 950 Operating (marketing) cost per unit sold $725 $725 Fixed costs Manufacturing costs $490,000 $490,000 Operating (marketing) costs $120,000 $120,000 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 units. There is no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in which it occurs. 1. Prepare Ending inventory for Crystal Clear in January and February 2017. (10 marks) 2. Prepare income statements under variable costing. (10 marks) 3. Prepare the budgeted fixed manufacturing cost per unit and budgeted total manufacturing cost per unit under absorption costing. (10 marks) 4. Prepare income statements under absorption costing. (10 marks) 5. Explain the difference in operating income for January and February under variable costing and absorption costing. (10 marks)