Absorption and Variable Costing Comparisons Peachtree Company manufactures peach jam. Because of bad weather, its peach crop was small. The following data have been gathered for the summer quarter of 2009: Beginning inventory (cases) 0 Cases produced 10,000 Cases sold 9,200 Sales price per case $60 Direct materials per case $7 Direct labor per case $9 Variable manufacturing overhead per case $3 Total fixed manufacturing overhead $400,000 Variable selling and administrative cost per case $2 Fixed selling and administrative cost $48,000 (a) Prepare a functional income statement for the quarter using absorption costing. (Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) Peachtree Company Functional (Absorption Costing) Income Statement For the Summer Quarter 2009 Sales $ 0 Cost of goods sold: Variable costs $ 0 Fixed costs 0 Goods available 0 Ending inventory 0 0 Gross profit 0 Operating expenses: Variable selling and administrative $ 0 Fixed selling and administrative 0 0 Net income (loss) $ 0 (b) Prepare a contribution income statement for the quarter using variable costing. (Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) Peachtree Company Contribution (Variable Costing) Income Statement For the Summer Quarter 2009 Sales $ 0 Variable expenses: Manufacturing 0 Selling and administrative 0 Contribution margin 0 Fixed expenses: Manufacturing overhead 0 Selling and administrative 0 Net income (loss) $ 0 $ 0 $ o (c) What is the value of ending inventory under absorption costing? $ 0 (d) What is the value of ending inventory under variable costing? $ 0