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Berk Company began operations on January 5,2018 . Cost and sales information for its first two calendar years of operations are summarized below. Required 1.

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Berk Company began operations on January 5,2018 . Cost and sales information for its first two calendar years of operations are summarized below. Required 1. Prepare an income statement for the company for 2018 under absorption costing. 2. Prepare an income statement for the company for 2018 under variable costing. 3. Explain the source(s) of the difference in reported income for 2018 under the two costing methods. 4. Prepare an income statement for the company for 2019 under absorption costing. 5. Prepare an income statement for the company for 2019 under variable costing. 6. Prepare a schedule to convert variable costing income to absorption costing income for each of the years 2018 and 2019

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