1. Prepare an absorption costing income statement for each year.

2. Reconcile the absorption costing and variable costing operating income figures for each year. (Loss amounts should be indicated by a minus sign.)

71x M McGraw Hill X Question 1 - Assignment x 1- C Solved: Variable G During Durton Compan X C Get Homework Help Witx to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnectmheducation.com%252F*/ hent 60 Saved During Durton Company's first two years of operations, the company reported variable costing operating income as shown belo Production and cost data for the two years are given: Units produced Units sold Year 1 25,000 20,000 Year 2 25,000 30,000 Year 1 $1,000,000 Year 2 $1,500,000 Sales (at $50 per unit) Variable expenses: Variable cost of goods sold (at $20 per unit) Variable selling and administrative costs (ot $3 per unit) Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Total fixed expenses Operating income (loss) 400,000 60,000 460,000 540,000 600,000 90.000 690,000 810,000 350,000 250,000 600,000 $ (60,000) 350,000 250,000 600,000 $ 210,000 The company's $20 unit product cost is computed as follows: $ 8 13 Direct materials Direct Labour Variable manufacturing overhead Unit product cost $20 Required: 1. Prepare an absorption costing income statement for each year. Absorption Costing Income Statements Year 1 Year 2 Wis Prey 1 of 1 Next to search O OP TO 38 9