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1. Smart Screen Corporation manufactures and sell 50 -inch television sets. The selling price per unit is $2,500. A fixed manufacturing cost rate is computed
1. Smart Screen Corporation manufactures and sell 50 -inch television sets. The selling price per unit is $2,500. A fixed manufacturing cost rate is computed at the end of each month by dividing the actual fixed manufacturing costs by the actual production units. Actual data relating to January and February 2019 are as follows: Required: 1. Prepare income statements for big screen in January and February 2019 under absorption costing. 2. Prepare income statements for big screen in January and February 2019 under variable costing. 3. Reconcile the difference between the operating incomes under absorption and variable costing for the months of January and February 2019. 2. Provide reasons for the use of different product costing methods in companies with specific focus on absorption, variable, and throughput costing
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