Pinellas 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 follows:

There were no work-in-process inventories at the beginning or end of the year.

Required:
1. What would be Pinellas Pillow Company's finished-goods inventory cost on December 31 under the variable-costing method?
2. Which costing method, absorption or variable costing, would show a higher operating income for the year? By what amount?
3. Suppose Pinellas Pillow Company uses throughput costing, and direct material is its only unit level cost. What would be Pinellas' finished-goods inventory on December 31?

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Direct material used. Direct labor incurred. $80,000 40,000 Fixed manufacturing overhead. 50,000 Variable manufacturing overhead 24,000 Fixed selling and administrative expenses 60,000 Variable selling and administrative expenses 9,000 Finished-goods inventory, January 1. None