PROBLEM 6 Inventory Costing (20 POINTS); EntertainMe dora relating to January and February, 2017 are as follows: Corporation manufoutures and sells 50-inch television sets and uses standard costing. Actual ael vsion sets February January $3,000 100 1400 53,000 Selling price Beginning I'G inventory (in units) Units Produced Units Sold 1.500 1,400 150 Eading FG inventory (in units) Variable costs per unit: $600 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S600 $300 $200 $600 $300 $200 $600 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $450.000 $100,000 $450,000 $100,000 The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 units. There are no price, efficiency, or spending variances. Any product-volume variance is written oft to cost of goods sold in the month in which it occurs. A. What is the NOI for February 2017 under variable costing? (5 pts) FROBLEM6-Inventory Costing continued B. How much FMOH is alloeated during February 2017 under atsorption cting" (s ps) C. What is the dollar ar value of the adjustment for product-volume variance to cost of goods sold (Cos) costing (ifany) for February 2017? Don's forget to indicate if this adjustment the adjustment increnses or decreases CGS. (5 points) o Give an example of how, under absorption costing, operating income could fall even though es level rises. (5 points) PROBLEM 6 Inventory Costing (20 POINTS); EntertainMe dora relating to January and February, 2017 are as follows: Corporation manufoutures and sells 50-inch television sets and uses standard costing. Actual ael vsion sets February January $3,000 100 1400 53,000 Selling price Beginning I'G inventory (in units) Units Produced Units Sold 1.500 1,400 150 Eading FG inventory (in units) Variable costs per unit: $600 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S600 $300 $200 $600 $300 $200 $600 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $450.000 $100,000 $450,000 $100,000 The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 units. There are no price, efficiency, or spending variances. Any product-volume variance is written oft to cost of goods sold in the month in which it occurs. A. What is the NOI for February 2017 under variable costing? (5 pts) FROBLEM6-Inventory Costing continued B. How much FMOH is alloeated during February 2017 under atsorption cting" (s ps) C. What is the dollar ar value of the adjustment for product-volume variance to cost of goods sold (Cos) costing (ifany) for February 2017? Don's forget to indicate if this adjustment the adjustment increnses or decreases CGS. (5 points) o Give an example of how, under absorption costing, operating income could fall even though es level rises. (5 points)