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Requirement $1.$ Compute the product cost per game produced under absorption costing and under variable costing.

Requirement $2$a$.$ Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing.

Requirements

Compute the product cost per game produced under absorption costing and

under variable costing.

Prepare monthly income statements for October and November, including

columns for each month and a total column, using these costing methods:

a$.$ absorption costing $.$

b$.$ variable costing.

Is operating income higher under absorption costing or variable costing in

October? In November? Explain the pattern of differences in operating income

based on absorption costing versus variable costing.

Determine the balance in Finished Goods Inventory on October $31$ and

November $30$ under absorption costing and variable costing. Compare the

differences in inventory balances and the differences in operating income.

Explain the differences in inventory balances based on absorption costing

versus variable costing.