Inventory data for a manufacturing firm for the month of January follows. One set of figures is based on variable and the other set is based on absorption costing. Balance Sheet Balance Sheet 2 $17,550 7,300 Inventory, January1 $37,680 Inventory, January 31 Which balance sheet is based on the absorption costing method? Balance sheetis based on the absorption costing method. 18,010 During January, was production equal to, greater than, or less than sales for the month? Production was Calculate the dollar difference between variable costing income and absorption costing income for January. sales for the month. Difference between variable costing income and absorption costing income