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Blue Mountain Products manufactures and sells a variety of camping products. Recently, the company opened a new plant to manufacture a standing tent. Cost and
Blue Mountain Products manufactures and sells a variety of camping products. Recently, the company opened a new plant to manufacture a standing tent. Cost and sales data for the first month of operations (June 2018) are as follows: Manufacturing Costs: Fixed overhead $240,000 Variable overhead $6 per tent Direct labor $20 per tent Direct material $50 per tent Beginning Inventory: 0 tents Tents Produced 10,000 Tents Sold 8,000 Selling and administrative costs: Fixed $500,000 Variable $10 per tent sold The tent sells for $250. Management is interested in the opening month's results and has asked for an income statement. Required: 1. Assuming the company uses Throughput costing method: A. Prepare the Throughput costing income statement for the month of June 2018. B. Reconcile the difference in net income between the Variable-costing and Throughputcosting methods. C. Reconcile the difference in net income between the Absorption-costing and Variablecosting methods
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