CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Not completeMarked out of 31.00 P Flag question Variable and Absorption Costing Frances Manufacturing makes only one product with total unit manufacturing costs of $66, of which $38 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $99 per unit, and the cost structure did not change. Frances uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 00,000 70,000 00,000 120,000 2015 2016 a. Prepare gross profit computations for 2015 and 2016 using absorption costing. Do not use negative signs with your answers. a. Prepare gross profit computations for 2015 and 2016 using absorption costing. Do not use negative signs with your answers. Absorption Costing 2015 2016 Sales Cost of goods sold: Beginning inventory Production Goods available Less: Ending inventory Cost of goods sold Gross proft b. Prepare gross profit computations for 2015 and 2016 using variable costing. Do not use negative signs with your answers Variable Costing 2015 2016 b. Prepare gross profit computations for 2015 and 2016 using variable costing. Do not use negative signs with your answers. Variable Costing 2015 2016 Sales Variable cost of goods sold: Beginning inventory Production Goods available Less: Ending inventory Variable cost of goods sold Less: Fixed manufacturing costs Gross proft C. Explain how your answers illustrate the impact of differences between production and sales volumes on the gross profits reported each year under absorption and variable costing. Select the most appropriate statement