For 2011,Nichols,Inc Required:
A

Essay

For 2011,Nichols,Inc.,had sales of 150,000 units and production of 200,000 units.Other information for the year included:
$$\begin{array}{l}\begin{array} { l r } \text { Direct manufacturing labor } & \$ 187,500 \\\text { Variable manufacturing overhead } & 100,000 \\\text { Direct materials } & 150,000 \\\text { Variable selling expenses } & 100,000 \\\text { Fixed ad ministrative expenses } & 100,000 \\\text { Fixed manufacturing overhead } & 200,000\end{array}\\\text { There was no beginning inventory. }\end{array}$$ Required:
a.Compute the ending finished goods inventory under both absorption and variable costing.
b.Compute the cost of goods sold under both absorption and variable costing.