1,2,&3

Income Statements and Firm Performance: Variable and Absorption Costing bellison Company had the following operating data for its first two years of operations: Variable costs per unit: Direct materials 4.00 Direct labor $2.90 Variable overhead 1.50 Fixed costs per year Overhead 180,000 Selling and administrative 70,350 Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing. Required: 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter"0" Jellison Company Absorption-Costing Income Statement For Years 1 and 2 Year 1 Year 2 Beginning Inventory Less: Sales Previous 1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0". Jellison Company Absorption-Costing Income Statement For Years 1 and 2 Year 1 Year 2 Beginning inventory Less: Sales Gross profit Less: Beginning Inventory Operating income Cost of goods sold: Beginning inventory Cost of goods sold Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? Improved Cost of goods sold income, improved or declined from Year 1 to Year 2? Has firm performance, as measured Improved 2. Prepare income statements for both years using variable costing. If an amount is zero, enter "O". Jellison Company Variable-Costing Income Statement For Years 1 and 2 Year 1 Year 2 Contribution margin Less: Operating income Variable cost of goods sold: Contribution margin Less: Operating income Variable cost of goods sold: Cost of goods sold Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 3. Which method do you think most accurately measures firm performance