CFO of Current Designs Corporation retrieved the following information with respect to the top-selling of rotomolded kayaks product line from the income statements for the last two years. During these two years it produced 3,000 units in first year and 2,400 in the second year, while sales were 2,400 units in the first year and 2,700 in the second year. Variable production costs were $570 per unit during both years (direct materials $200, direct labour $175, and variable overhead $195). The company uses Last-in, first-out (LIFO) for inventory costing. The absorption costing comparative income statements for these 2 years were:

		Year 1		Year 2
Sales		$2,280,00		$2,565,000
Less COGS:
beginning inventory	$0		$480,000
Product cost	$2,400,000		$2,058,000
ending inventory	-$480,000	$1,920,000	-$240,000	$2,298,000
Gross Profit		$360,000		$267,000
Less operating Selling expensese
Variable	$120,000		$135,000
Fixed	$30,000		$30,000	$165,000
Operating income		$210,000		$102,000

a) Using the information provided prepare condensed, two-year comparative income statements using the variable costing method. Reconcile the variable costing income with the absorption costing income.

b) Assume that Current Designs uses a normal costing method. The company had budgeted 3,200 units of production for each of the two years. Prepare condensed, two-year comparative income statements using the Normal costing method. Reconcile the variable costing income with the normal costing income statements.

c) Using the information provided above prepare condensed, two-year comparative income statements using the throughput costing method. Reconcile the normal costing income statements with the throughput costing income statements.