variable versus tuli eosting, ineorne effeets Retum to problem 11, Chapter 6. Standard eosting is now used, based on the LLAs noted in the originaI problem. Produetion and sales remain as before. Selling and administrative totals 120,000 in eaeh period. Manufaeturing eost, though, totals as follows:

period 1: 272,500;

period 2: 267,600;

period 3: 264,800;

period 4: 275,600; and period 5: 260,600.

Determine the incarne and ending finished goods inventory for eaeh period, using standard, full eosting and using standard, variable eosting. How do you explain the period by period differenees between full and variable eost ineome?

AppendixLO1