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Business, 18.01.2020 09:31 sosaucyy

Easton pump company’s planned production for the year just ended was 19,300 units. this production level was achieved, and 20,600 units were sold. other data follow:

direct material used $ 573,210
direct labor incurred 277,920
fixed manufacturing overhead 391,790
variable manufacturing overhead 185,280
fixed selling and administrative expenses 351,260
variable selling and administrative expenses 112,905
finished-goods inventory, january 1 2,200 units

the cost per unit remained the same in the current year as in the previous year. there were no work-in-process inventories at the beginning or end of the year.

required:
1. what would be easton pump company’s finished-goods inventory cost on december 31 under the variable-costing method? (do not round intermediate calculations.)
2-a. which costing method, absorption or variable costing, would show a higher operating income for the year?
2-b. by what amount? (do not round intermediate calculations.)

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