During the first year of operations, Snow Limited produced 27,000 plastic scoops. Scoops are oversized shovels that are used to push debris away. Unit sales were 26,400 scoops. Fixed overheads was applied at $0.75 per unit produced. Fixed overhead was underapplied by $3,000. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's operations are as follows on an absorption costing basis: S Sales (26,400 at $12.00 per unit) 316,800 Less: Cost of goods sold 161,400 Gross margin 155,400 Less selling and administrative expenses (fixed) 120,000 Operating income 35,400 Required: (1) Give the cost of the firm's ending inventory under absorption costing. What is the cost of the ending inventory under variable costing? (ii) Prepare a variable costing income statement. Reconcile the difference between the two income figures