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Easton Pump Company's planned production for the year just ended was 18,000 units. This production level was achieved, and 21,600 units were sold. Other
Easton Pump Company's planned production for the year just ended was 18,000 units. This production level was achieved, and 21,600 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 $532,800 268,200 396,000 180,000 329,400 103,500) 4,400 units 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 invento round intermediate calculations.) December 31 under the variable-costing method? (Do not 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? (Do not round intermediate calculations.) 1. Finished-goods inventory cost 2-a. Higher operating income method 2-b. Difference in reported income
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