I need the numbers for the equation warehousing costs as period costs-units produced= increase in operating income
ronewok. Accounting Lab 2 orhewOK ncounting Lab 2 Score: 0 of 1 pt Save 4014(2complete) HW Score: 37.22%, 1 .49 of 4 pts 3(oo/static) Cal Question Help now plant manager of Old State Manufacturing Plant Number 7, has just reviewed a draft of his year ond financial statements. Higgins receives a say te Soott Higgins, the now plant manager of Old State yoar-end bonus of 11.5% of the planrs operating no me before tax. The year-end on est tem nt pro least. After reviewing the numbers, Higgins demanded that income number the next time around he would be forced to look for a new controller. O (click the icon to view additional data.) Read the roquirements numbers, Higgins demanded that his controller go back and 'work the numbers" again. Higgins insisted that if he didn't see a better operating ided by he plants ontroller was disappointing Requirement 1. Show numerically how operating income would imp ove by $495,000 just by classifying the preceding costs as product costs instead of period expenses? Begin by determining the formula to compute how the controller was able to improve operating income, then enter the appropriate amounts and compute the increase n operating incomo. Warehousing costs as period ostsUnits producedIncrease in operating income More Info Old State Manufacturing dlassifies all costs directly related to the manufacturing of its product as product costs. These costs are inventoried and later expensed as costs of gopds sold when the product is sold. All other expenses, including finished goods warehousing costs of $3,636,000 are classified as period expenses. Higgins had suggested that warehousing oosts be included as product costs because they are "definitely related to our product The company produced 220,000 units during the period and sold Choose from a 190,000 units. As the controller reworked the numbers, she discovered that if she inckuted warohousing costs as product Check Answer parts costs, she coulkd improve operating income by $495 s, she could improve operating income by $495,000. She was also sure these new numbers would make Higgins happy