ABC Co. manufactures plastic pet toys. At the start of the current year, ABC Co. had no inventory. During the year, Hilton produced 5,600,000 units, and it sold 5,000,000 units for $2.25 each.

Variable Manufacturing costs were $0.85 per unit (consisting of $.40 of direct materials), and variable general, selling and administration cost was $0.15 per unit. Fixed Manufacturing costs were $2,300,000 and fixed general, selling and administrative costs were $1,100,000.

REQUIRED:

A) Construct an absorption costing income statement for the current year.

B) Construct a variable costing income statement for the current year.

C) Reconcile the difference between the variable and absorption costing incomes.

D) Construct a throughput costing income statement for the current year.

I need a GOOD and DETAILED answer please. Thanks