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Income Statements, Variable and Absorption Costing The following information pertains to VMadamit, Inc., for last year: Beginning inventory, units 1,400 Units produced 100,000 Units sold 101,000 Variable costs per unit: Direct materials $8.00 Direct labor $10.00 Variable overhead $1.00 Variable selling expenses $2.00 Fixed costs per year Fixed overhead $200,000 Flxed selling and administrative expenses $230,000 There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? units Required 1. How many units are in ending inventory? units 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3a. Assume the selling price per unit is $32. Prepare an income statement using variable costing. Vladamir, Inc. Variable-Costing Income Statement For Last Year Less: Contributi on margin Less: Operating income Less: Contribution margirn Less: Operating income 3b. Assume the selling price per unit is $32. Prepare an income statement using absorption costing. Vladamir, Inc. Absorption-Costing Income Statement Gross profit Operating income