The following information pertains to Vladamir, Inc., for last year:

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:

How many units are in ending inventory?

units

Without preparing an income statement, indicate what the difference will be between variable$-$costing income and

absorption$-$costing income.

$3$a$.$ 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:

Less:

Operating income

q

$3$b$.$ Assume the selling price per unit is $$32.$ Prepare an income statement using absorption costing.

Vladamir, Inc.

Absorption$-$Costing Income

Statement

For Last Year

$

Gross profit

Operating income