Monrad Corporation uses variable costing for internal reporting purposes. Its preadjusted trial balance for the year ended December 31 shows An analysis shows that cost of goods sold represents 30,000 direct labor-hours, and finished goods inventory 3,000 direct labor-hours. Monrad feels that the best way of allocating a fair share of nonvariable production costs to products is on the basis of direct labor-hours. Required: Prepare an adjusting entry that will put cost of goods sold and finished goods inventory on an absorption costing basis. What will be the difference between pretax income on a variable costing basis and on an absorption costing basis (assume zero beginning-of-year finished goods inventory)? What will be the December 31 amount of finished goods inventory on an absorption costing basis?