Vintage Co. made 4,000 units of a product during its first year of operations and sold 3,000 units for $600,000. There was no ending work-in-process inventory. Total costs were $590,000, consisting of the following:
Direct materials and direct labour .......................$250,000
Manufacturing overhead (45% fixed) ...................190,000
Selling and administrative .................................150,000
REQUIRED
A. Calculate the cost of the 1,000 units of finished goods ending inventory under actual variable costing.
B. Calculate the amount that net income would change if Vintage Co. changed from actual variable costing to actual absorption costing.