just need requirement 4 answered please!

X Requirements a. 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: absorption costing. b. variable costing. 3. 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. 4. 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. Print Done Play Time's fist two montt intusiness using 2018 Play Time franufacture video games that it sols for 598 mach. The company is a fired mandacturing over alocation rate of 54 per game. Assume all costs and production levels are exactly as planted. The following dota ar from (Click the icon to view the data) Requirement 1. Compute the product cost per gente produced under absorption conting and under variatie costing October 2018 November 2018 Absorption V Absorption Variable conting couting costing conting Total productos pergame 15 5 15 5 Requirement 2. Prepare monthly income votoments for October and November, including columns for each month and a total column, uning abeception conting Play Time Absorption Costing Income Statement October 2018 November 2018 Total Not Sales Revenue 36,000 $ 32.800 118.000 Cost of Good Gold 15.000 34.500 42.600 Gross Pro 91.000 40.300 OD 300 Selling and Adrive Couts 11.500 15,400 21.00 9.500 5 Operating Income 32.500 5 42100 Requirement 25. Prepare monthly income woments for October and November, ningum for each month and totalmente con Play Time Variable Coating income iterunt October 2018 November 2011 Total No Reven 36.000 2.00 $ 00 - Data Table October November Sales 1,000 units 2,300 units Production 2,200 units 2,200 units $ 11 $ 11 Variable manufacturing cost per game Sales commission cost per game 3 3 Total fixed manufacturing overhead Total fixed selling and administrative costs 8,800 8,500 8,800 8,500 Print Done including columns for each month and a total colu Play Time Variable Costing Income Statement October 2018 November 2018 Total Net Sales Revenue $ 36,000 $ 82,800 $ 118,800 Variable Costs 14,000 32,200 46,200 Contribution Margin 22,000 50,600 72,600 Fixed Costs 17,300 17,300 34,600 $ Operating Income 4,700 $ 33,300 $ 38,000 Requirement 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the patter In October, the operating income is higher under absorption costing. The primary reason for this is that in absorption costing, the fixed manufacturing overhead costs are distributed across the entire production run as part of the unit cost. Under the absorption costing method. $ 4,800 of fixed manufacturing overhead costs are not expensed and remain in Finished Goods Inventory In November, the operating income is higher under variable costing. The primary reason for this is because $ 400 of fixed manufacturing overhead that is contained in the units in ending inventory under absorption costing is not contained in the units of ending inventory under variable costing. As inventory declines, as was the case in November October's fixed manufacturing overhead nem In November, the operating income is higher under costing the primary reason for this is because 5400 of feed manufacturing overhead that is contained in the unitsin ending inventory under absorption costing is not contained in the units of ending inventory under variations inventory decine as was the case in November October's fed manufacturing overhead costs that absorption costing uned to that inventory an expensted in November This creases November boorption coming income Requirement 4. Deformine the lace in Finished Goods Inventory on October 31 and November 30 under brincosting and variable conting compare the ones internet and the income Explain the differences in inventory balances based on absorption conting vetsus variable conting October 31, 2018 Absorpcon Variable couting Finished Goodinvory