Based on the above information, suppose the firm produces two products, develop animaginative case of cost accounting for the year of 2021 as follows: 1For each product: Suppose that there is no beginning inventory of the finished goods, giveplanned production units, actual units produced, sales volume, and selling prices.

For each product: Suppose that there is no beginning inventory of the finished goods, give planned production units, actual units produced, sales volume, and selling prices Product Planned Actual unit Sales volume Selling prices (Vietnam Dong) production produced (units) units (units) (units) Product 1 Product 2 List costs/expenses needed to produce and sell the products as required in the table below. Names of all costs and expenses must be aligned with characteristics of the chosen firm. Amount must be specified in Vietnam Dong. Costs/Expenses Product 1 Product 2 Budgeted costs/expenses Actual Budgeted Actual costs/expenses costs/expenses costs/expenses Direct materials Direct labour Variable manufacturing overhead Variable selling expenses + Variable administrative expenses Suppose that the companies cannot chase fixed manufacturing overhead, fixed selling expenses, fixed administrative expenses to each product. Provide the following Product 1 and 2 information. Costs/Expenses Budgeted Actual costs/expenses costs/expenses Fixed manufacturing overhead Fixed selling expenses Fixed administrative expenses b. Classify above costs into different categories: product cost versus period cost, direct costs versus indirect costs, and variable costs versus fixed costs. c. Why costs are needed to classify into different categories? How cost classification links to absorption costing, variable costing, and cost allocation? 3.Calculating total COGM and COGM per unit for each product a. Suppose fixed manufacturing overhead is allocated based on direct labor cost, calculate COGM using (1) absorption costing and (2) variable costing. Cost allocation must be applied and Schedule of COGM must be prepared b. Why cost allocation is important in cost accounting? 3. Prepare Income Statements a. Prepare Income Statements for (1) absorption costing and (2) variable costing b. Why do firms need both absorption costing and variable costing