0 Units Sold $146 Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory Units Produced 25,000 20,000 Selling Price per Unit Variable Sales and Administration Expenses Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit Direct Labor Cost per Unit Variable Manufacturing Overhead Cost per Unit 54 Fixed Manufacturing Overhead Cost per Month $977,500 $4 $26 $11 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blarik. Appliance Apps Income Statement: Absorption Sales 2.920,000 Cost of Goods Sold: Beginning Inventory Cost of Goods Manufactured Previous Check My Work eBook Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold 8 Gross Profit Sales and Administrative Expenses: Variable Fixed Total Fixed Sales and Administrative Expenses Net Operating Income 975,000 Prepare an income statement under the variable casting method. If an amount box does not require an entry, leave it blank, Appliance Apps Income Statement: Variable Sales 2.920,000 Cost of Goods Sold Beginning Inventory Cost of Good Manufactured $ 0 Check My Work eBook DISCORDOUS Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory Total Cost of Goods Sold Gross Contribution Margin Sales and Administrative Expenses: Variable Contribution Margin Fixed Sales and Administrative Expenses Fixed Manufacturing Total Finced Sales and Administrative Expenses Net Operating Income 975,000 Feedback Absorption conting includes all costs necessary for production Conversely, variable costing only uses the variable costs that relate direct the production process. Keep this in mind when calcolating net income under each assumption. Depending on the cost method chosen Pru Check My Work Prepare a reconciliation between the two statements. Reconciliation Net Income under Variable Costing Add: Fixed Manufacturing Overhead Deferred Net Income under Absorption Feedback Cheok My Work Absorption costing includes all costs necessary for production. Conversely, va the production process. Keep this in mind when calculating net income under will be differences due to the way fixed costs are treated under each method