Data Table Total Manufacturing Cost for 100,000 units Absorption Costing Per unit product cost Variable Costing Per unit product cost Month Direct Materials $ 1,800,000 Direct Labor Variable MOH 375,000 250,000 300,000 Fixed MOH 2,725,000 Total Cost Print Done Requirements 1. Calculate the product cost per unit using 1) absorption costing and 2) variable costing. 2. If inventory increases by 4,000 units over the preceding period, by how much would operating income differ between the two costing methods? Explain. Print Done Kelley Industries makes high-performance swimwear for triathletes. Kelley's manufacturing costs for the production of 100,000 swimsuits were as follows: (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate the product cost per unit using 1) absorption costing and 2) variable costing. (Enter all amounts to the nearest cent. If a cost is not included in the product cost per unit, leave the box empty; do not enter a zero.) Total Manufacturing Variable Costing Absorption Costing Per unit product cost Month Cost for 100,000 units Per unit product cost Direct Materials Direct Labor Variable MOH $ 1,800,000 375,000 250,000 300,000 $ 2,725,000 Fixed MOH Total Cost Choose from any list or enter any number in the input fields and then continue to the next question. 0 Time Remaining: 03:53:18 Next Requirement 2. If inventory increases by 4,000 units over the preceding period, by how much would operating income differ between the two costing methods? Explain. Begin by selecting the formula used to determine the change in operating income. Then enter the amounts and calculate the difference in operating income. (Use parentheses or a minus sign for a decrease in operating income.) Difference in operating income = When inventory levels rise, inventory levels increase, some of the using However, under will result in a higher operating income. The difference arises because when remains "trapped" on the balance sheet as part of the cost of inventory all fixed MOH is expensed as a period cost. In our leading to a higher example here, $ more is expensed Choose from any list or enter any number in the input fields and then continue to the next