write my assignment 11523

Pandora Pillow Company's planned production for the year just ended was 10,000 units. This production level was achieved, but only 9,000 units were sold. Other data follow:    Direct material used$40,000 Direct labor incurred 20,000 Fixed manufacturing overhead 25,000 Variable manufacturing overhead 12,000 Fixed selling and administrative expenses 30,000 Variable selling and administrative expenses 4,500 Finished-goods inventory, January 1 None 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 Pandora Pillow 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 the operating income differs between the costing methods, absorption or variable costing? (Do not round intermediate calculations.)

Pandora Pillow Company’s planned production for the year just ended was 10,000 units. This production level was achieved, but only 9,000 units were sold. Other data follow:

    Direct material used$40,000 Direct labor incurred 20,000 Fixed manufacturing overhead 25,000 Variable manufacturing overhead 12,000 Fixed selling and administrative expenses 30,000 Variable selling and administrative expenses 4,500 Finished-goods inventory, January 1 None 

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. 1. What would be Pandora Pillow Company’s finished-goods inventory cost on December 31 under the variable-costing method? (Do not round intermediate calculations.)
  2. 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year?
  3. 2-b. By what amount the operating income differs between the costing methods, absorption or variable costing? (Do not round intermediate calculations.)
 
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