1a. 1b. 1c. 1d. What is the product cost per unit using absorption costing? What is the product cost per unit using variable costing? What is the ending inventory balance using absorption costing? What is the ending inventory balance using variable costing? What is cost of goods sold using absorption costing? What is cost of goods sold using variable costing? What is operating income using absorption costing? 1e. 1f. 1g. 1h. What is operating income using variable costing? Requirement 2. What is the underlying reason for the difference in operating income between the two costing methods? whereas variabl Absorption costing generates a higher operating income. This is because under absorption costing, fixed manufacturing overhead becomes part of the product cost of each unit, expenses all of the fixed manufacturing overhead as a period cost. Choose from any list or enter any number in the input fields and then continue to the next question. Sales revenue 500,000 Less: Variable expenses Variable cost of goods sold Variable operating expenses Contribution margin III Less: Fixed expenses Fixed manufacturing overhead Variable operating expenses Operating income Use the statements you prepared to answer the following questions: 1a. What is the product cost per unit using absorption costing? 1b. What is the product cost per unit using variable costing? Imperial Industries has one product. Information about the production and sales of that product for the past year follow. (Click the icon to view the data.) i X Data Table The company had no beginning inventory. Read the requirements. $ 50.00 Requirement 1. Prepare two income statements for the year, one using absorption costing and one using variable costing. $ 15.00 Begin by preparing the income statement for the year using absorption costing. $ 4.00 Imperial Industries $ 176,000 Income Statement (Absorption Costing) Selling price per unit Direct material per unit . Direct labor per unit. Total annual manufacturing overhead. Fixed portion of annual manufacturing overhead Variable operating expenses per unit sold Fixed operating expenses per year in total. Units manufactured . Units sold . $ 160,000 For the Year Ended $ 2.00 Sales revenue 500,000 $ 49,000 300,000 Less: Cost of goods sold Gross profit 16,000 200,000 10,000 Less: Operating expenses 69,000 131,000 Operating income Print Done Now prepare the income statement for the year using variable costing