For 2011, Nichols, Inc

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For 2011, Nichols, Inc., had sales of 150,000 units and production of 200,000 units. Other information for the year included:

 

Direct manufacturing labor	$187,500
Variable manufacturing overhead	100,000
Direct materials	150,000
Variable selling expenses	100,000
Fixed administrative expenses	100,000
Fixed manufacturing overhead   There was no beginning inventory.	200,000

Required:

1. Compute the ending finished goods inventory under both absorption and variable costing.
2. Compute the cost of goods sold under both absorption and variable costing.