On March 31, Brass Companys March absorption costing accounting system contained the following information. Assume per units costs for February were the same as the March per unit costs.

Units sold	82,000
Units Produced	80,000
Sales Price	$40.00
Total Cost of Goods Manufactured	$1,600,000
Total Selling & Admin. Expenses	$100,000
Units in Ending Inventory	1,000
Fixed Manufacturing Costs	$200,000
Fixed Selling & Admin. Expenses	$60,000

Required:

1. Determine the March Ending Inventory balance using absorption costing (Show your work).
2. Determine the March Beginning Inventory balance using absorption costing (Show your work).
3. Determine the Ending Inventory balance using variable costing (Show your work).
4. Determine the March Beginning Inventory balance using variable costing (Show your work).
5. Prepare an Absorption Costing Income Statement down to the Operating Income level.
6. Prepare a Variable Costing Income Statement down to the Operating Income level.
7. Show how the difference in the operating incomes in (C) and (D) occurred. In other words, show me how you would reconcile the difference.