The Following Data Relate to Venture Company, a New Corporation

Essay

The following data relate to Venture Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:
$\begin{array} { | l | r | } \hline \text { Direct materials used } & \$ 400,000 \\\hline \text { Direct labour } & 200,000 \\\hline \text { Fixed manufacturing overhead } & 250,000 \\\hline \text { Variable manufacturing overhead } & 120,000 \\\hline \text { Fixed selling and administrative expenses } & 300,000 \\\hline \text { Variable selling and administrative expenses } & 45,000 \\\hline\end{array}$ Venture Company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit.
Required:
A. What is the cost of Venture's end-of-period finished-goods inventory under the variable-costing method?
B. Calculate the company's variable-costing net income.
C. Calculate the company's absorption-costing net income.