Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 26,000 Units Sold 20,800 Selling Price per Unit $144 Variable Sales and Administration Expenses $4 Fixed Sales and Administration Expenses $1,008,800 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $10 Variable Manufacturing Overhead Cost per Unit 193 Fixed Manufacturing Overhead Cost per Month $1,019,200 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank. Appliance Apps Income Statement: Absorption _.. - Cost of Goods Sold: Beginning Inventog v J Cost of G'oods'M'anufaEtured v J caster oases; Available 'foi'Z-'iale v: J Ending Inventing w J WEE Total Cost of Goods Sold Gross Prot" vs J Sales and Administrative Expenses: Variable loo UH DU Fixed Tota'E'Fbe'd Eale's'an'd'Adm'in'is'ti-aveER\" eases w J Netber'atirig" "manna v' J Fm ' 'CheckMyWork Absorption cosng includes all posts necessaryr for pfoduotion. Conversely, variable costing only uses the Variable costs that relate directly to the production process. Keep lls in mind when calculating net income under each assumption. Depending on the cost method chosen; there will be differences due to the way xed costs are treated under each method (absorption and variable). Prepare an income statement under die variable costing method. If an amount box does not require an entry, leave it blank. Applia nee Apps Income Statement: Variable v 0 Cost of Goods Sold: v v loom Total Cost of Goods Sold v Sales and Administrative Expenses: Variable Prepare an income statement under the variable costing method. If an amount box does not require an entryr leave it blank. Appliance Apps Income Statement: Variable ' D Cost of Goods Sold: '- Total Cost of Goods Sold vi Sales and Administrative Expenses: Variable m HUB Db DE 1 1r '- v . v Feeclaadt- 'CheokaWnrlI: Absorption costing includes all costs necessary for production. Conversely, variable ousting only uses the variable costs that relate directly to the production process. Keep this in mind when calculating net income under each assumption. Depending on the cost method chosen, there will be differenoes due to the way xed costs are treated under each method {absorption and variable}. Prepare a reconciliation between the two statements. Reconciliation v m Fastback 'Che-okMyWnrk Absorption costing includes all costs necessary for production. Conversely,r variable costing only uses the variable costs that reiate directly to the produclion process. Keep U155 in mind when calculating net income under each assumption. Depending on the cost method chosen, there will be differences due to the way xed costs are treated under each method {absorption and valiabte}. Fee-cliadr ' Check Hy yum Partialiy correct