Webber, Inc., began operations at the start of the current year, having a production target of 60,000 units. Actual production totaled 60,000 units, and the company sold 95% of its manufacturing output at $50 per unit. The following costs were incurred:

Manufacturing:

Direct materials used $240,000

Direct labor 480,000

Variable manufacturing overhead 360,000

Fixed manufacturing overhead 600,000

Selling and administrative:

Variable $180,000

Fixed 630,000 REQUIRED: (Show your detailed computations!)

a. Assuming the use of variable-costing, compute the cost of ending finished goods inventory.

b. Assuming the use of absorption-costing, how much fixed selling and administrative cost would Webber include in the ending finished-goods inventory?

c. Compute the companys absorption-costing operating income.

d. Compute the companys variable-costing operating income.

e. Reconcile the difference in operating income.