Central Avenue Manufacturing, Inc. began operations on January $1,2020.$ The company

uses actual costing and does not generally carry Work in Process Inventories at the end

of the year. Variable product costs per unit were the same for $2020,2021$ and $2022$ and

total $$75$ per unit. Total Fixed Overhead Costs are $$954,000$ per year. Variable Selling

and Administrative Costs are $$14$ for each unit sold. Fixed Selling and Administrative

Costs are $$456,000$ per year. The Selling Price is $$105$

per unit for all three years. Production and Sales figures $($in units$)$ for three years are

below.

The company uses the FIFO method to assign cost to any units left in ending Finished

Goods Inventory.

TASKINGS:

A$.$ Prepare, in good form, two Income Statements for $2021$: One using Absorption

Costing and one using Variable Costing. Use the formats that I used in the class

example for Chapter $6.$ Then, prepare a Reconciliation to explain the difference in

the Net Income figures. Again, use the format that I used in the class example.

B$.$ Repeat part A $-$ only do it for $2022$ instead of $2021.$