Selling price$25.00 per unit sold

Direct material$5.00 per unit produced

Direct labor$4.00 per unit produced

Var MOH$2.00 per unit produced

Fixed MOH$80,000

Fixed S&A$20,000

Units produced22,000

Units sold20,000

There were no beginning inventories.

Required:

1. Calculate the net income and cost of the ending inventory using the variable costing method.
2. Calculate the net income and cost of the ending inventory using the absorption costing method.