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Candace B. Rittenoff is the Chief Accountant for the The Doors Corporation. The Company manufactures and sells one model of expandable dog doors for home
Candace B. Rittenoff is the Chief Accountant for the The Doors Corporation. The Company manufactures and sells one model of expandable dog doors for home patio doors. Candace needs help in compiling financial statements for the next Board of Director's meeting. You are working part-time during the fall semester and tell her that you can complete this project before its due date. She produces a file with the following information pertaining to each of the company's first three years of operations. 2015 $54.00 2016 $54.00 4.00 2017 $54.00 Direct Production Cost per door Variable Selling & Administrative Cost per door Fixed Overhead per year $600,000 $600,000 $600,000 $180,000| $180,000 | $180,000 4.00 4.00 Fixed Selling Expense per year 100,000 75,000 80,000 90,000 $70 80,000 75,000 $70 Production (in units) Sales (in units) Selling price $70 The company uses the FIFO method to compute all inventory balances. The company carries no Work in Process inventories. A. Prepare absorption cost income statements for the year ended December 31, 2016. B. Prepare variable cost income statements for the year ended December 31, 2016
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