EX $8-23($Algo$)$ Absorption and Variable Costing $($LO $8-1,8-4)$

Pandora Brewing Company$$s planned production for the year just ended was $21,300$ units. This production level was achieved, but only $19,200$ units were sold. Other data follow:

Direct material used $ $634,740$

Direct labor incurred $342,930$

Fixed manufacturing overhead $434,520$

Variable manufacturing overhead $223,650$

Fixed selling and administrative expenses $368,490$

Variable selling and administrative expenses $99,045$

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 Brewing Company$$s finished$-$goods inventory cost on December $31$ under the variable$-$costing method?Ex $8-23($Algol Absorption and Variable Casting $[$LO $8-4,$ E$-9)$

Ho:

Rsejulind:

$2$:b $$y wiluI $|$imaililf$?$

Note: 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?

Note: Do not round intermediate calculations.