Use the information from Exercise 14.18. The production variable cost ($40,000) includes $25,000 in direct materials and $15,000 in direct labor.

REQUIRED

A. Using the throughput costing method: 

(1) Calculate the cost of ending inventory and 

(2) Prepare an income statement for the current period.

B. Reconcile income under the throughput costing method with income under the variable costing method.