0 4 Not complete worked out of 5.00 Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $54, of which $40 is variable. No units were on hand at the beginning of 2019. During 2019 and 2020, the only product manufactured was sold for 65 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2019 and 2020 Units Manufactured Units sold 2020 110.000 120.000 Prepare gross profit computations for 2019 and 2020 using absorption costing Do not use negative signs with your answers Absorption Corting 2019 2020 b. Prepare gross profit computations for 2019 and 2020 using variable costing Do not use negative signs with your answers Variable Cesting Virtle sost of toods sold: Less Ending inventory Variable cost of goods sold Less Fed manufacturing costs Gross profit c. Explain how your answers illustrate the impact of differences between production and sales volumes on the gross profits reported each year under absorption and variable costing Select the most appropriate statement of production volume exceeds sales volume, the absorption costing gross profit will be higher than the variable costing gross profit. Of sales volume exceeds production volume, the absorption costing gross profit will be higher than the variable costing gross profit. of production volume exceeds sales volume, the variable costing gross profit will be higher than the absorption costing gross profit Of sales volume exceeds production volume, the variable costing gross profit will be lower than the absorption costing gross profit Check Previous Finish attempt Save Answers