OakWoods Corporation, Which Uses Throughput Costing, Began Operations at the Start

OakWoods Corporation, which uses throughput costing, began operations at the start of the 2012 fiscal year. Planned and actual production equaled 50,000 units, and sales totalled 45,000 units at $80 per unit. Cost data for 2012 were as follows: $\begin{array}{lr}\text { Direct materials (per unit) }&\$25\\\text { Conversion cost: }\\\text { Direct labour } & 220,000 \\\text { Variable manufacturing overhead } & 340,000 \\\text { Fixed manufacturing overhead } & 525,000 \\\text { Selling and administrative costs: } & \\\text { Variable (per unit) } &10 \\\text { Fixed }& 230,000\end{array}$ The company classifies direct materials as a throughput cost.
Required:
A. What is meant by the term "throughput costing"?
B. Compute the cost of the company's year-end inventory.
C. Prepare OakWoods' income statement for the year in good form using throughput costing.