Concepts Beginning finished good inventory (*) Beginning work in progress inventory (*) Manufacturing variable costs Manufacturing fixed costs Ending work in progress inventory (*) Units Manufactured Units sold and revenues Units 50 125 165 Total amount 54,975 15,000 135,000 60,000 10,000 360,000 (*) These amounts are calculated under full (absorption) costing system. It is estimated that 60% of these are variable costs. Required: Using the Full (Absorption) Costing System 1.- Calculate cost of goods manufactured and the cost of goods sold. 2.- Prepare an income statement and calculate the operating income. The sales commissions and other marketing costs variables are 10% of sales. Fixed commercial costs are 22,000 and fixed administration costs are 16,000. Using the Variable Costing System 1.- Calculate cost of goods manufactured and the cost of goods sold. 2.- Prepare an income statement and calculate the operating income. Compare both income statement and ending finished good inventories and comment the results.