Langdon Company produced 10,440 units during the past year, but only 8,900 of the units were sold. The following additional information is also available.

Direct materials used $107,066

Direct labor incurred $30,000

Variable manufacturing overhead $23,710

Fixed manufacturing overhead $62,640

Fixed selling and administrative expenses $69,250

Variable selling and administrative expenses $8,370

There was no work in process inventory at the beginning of the year, nor did Langdon have any beginning finished goods inventory.

Q.1 What would be Langdon Companys finished goods inventory cost on December 31 under variable costing?

Q.2 Which costing method, absorption or variable costing, would show a higher net income for the year? By what amount?