(Ending inventory valuation; absorption vs. variable costing) Harvard Hats Compa

(Ending inventory valuation; absorption vs. variable costing) Harvard Hats Company produces baseball caps. In May 2000 the company manufactured 20000 caps. May sales were 18400 caps. The cost per unit for the 20000 caps produced wasDirect material$3.00Direct labor2.00Variable overhead1.00Fixed overhead1.50Total$7.50There was no beginning inventory for May.a. What is the value of ending inventory using absorption costing?b. What is the value of ending inventory using variable costing?c. Which accounting method variable or absorption would have produced the higher net income for May?