Langdon Company produced 9,600 units during the past year, but only 8,500 of the units were sold. The following additional information is also available. Direct materials used $105,600
Direct labor incurred $28,000
Variable manufacturing overhead $20,000
Fixed manufacturing overhead $48,000
Fixed selling and administrative expenses $71,000
Variable selling and administrative expenses $8,000

There was no work in process inventory at the beginning and end of the year, nor did Langdon have any beginning finished goods inventory.

Required:
a. What would be Langdon Company’s finished goods inventory cost on December 31 under variable costing?
b. Which costing method, absorption or variable costing, would show a higher net income for the year? By what amount?

Astudent was asked to draw a demand and supply graph to illustrate the effect on the market for premium bottled water of a fall in the price of electrolyteselectrolytes used in some brands of premium bottled​ water, holding everything else constant. she drew the graph to the right and explained it as​ follows: ​"electrolyteselectrolytes are an input to some brands of premium bottled​ water, so a fall in the price of electrolyteselectrolytes will cause the supply curve for premium bottled water to shift to the right​ (from upper s 1s1 to upper s 2 right parenthesis .s2). because this shift in the supply curve results in a lower price left parenthesis upper p 2 right parenthesis commap2, consumers will want to buy more premium bottled water and the demand curve will shift to the right​ (from upper d 1d1 to upper d 2 right parenthesis .d2). we know that more premium bottled water will be​ sold, but we​ can't be sure whether the price of premium bottled water will rise or fall. that depends on whether the supply curve or the demand curve has shifted farther to the right. i assume that the effect on supply is greater than the effect on​ demand, so i show the final equilibrium price left parenthesis upper p 3 right parenthesisp3 as being lower than the initial equilibrium price left parenthesis upper p 1 right parenthesis .p1.​" where is the flaw in the​ student's argument? supply will shift inward. demand will not shift. demand will shift inward.