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Easton Pump Company's planned production for the year just ended was 18,600 units. This production level was achieved, and 20,800 units were sold. Other data
Easton Pump Company's planned production for the year just ended was 18,600 units. This production level was achieved, and 20,800 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 $567,300 290,160 403,620 184,140 342, 240 101,370 3,000 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 inventory cost on December 31 under the variable- osting method? (Do not round intermediate calculations.) 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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