Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the difference between absorption-costing income and variable-costing income in year 4? Difference in reported income Req 1A Req 1B Req 2 Req Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using varia Year 1 Year 2 Year 3 Sales revenue Variable expenses: Variable manufacturing costs Variable selling and administrative $ 0 $ 0 $ 0 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Operating income $ 0 $ 0 $ 0 4 1 points Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing. b. Variable costing. 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? eBook Print References Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing. Year 1 Year 2 Year 3 Sales revenue Less: Cost of goods sold Gross margin Selling and Administrative Expenses Variable selling and administrative $ 0 $ 0 $ 0 MAC Check my work 4 Complete this question by entering your answers in the tabs below. 1 points Req 1A Req 1B Reg 2 Req 3A Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costin eBook Year 1 Year 2 Year 3 Print Sales revenue References $ 0 $ 0 $ 0 Less: Cost of goods sold Gross margin Selling and Administrative Expenses Variable selling and administrative Fixed selling and administrative Operating income $ 0 $ 0 $ Reg 1A Req 1B 4 Problem 8-38 Variable Costing and Absorption Costing Income Statements; Reconciling Reported Operating Income (LO 8-2, 8-3, 8-4) 1 points Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $30. The variable costs of production for one case of cans are as follows: eBook Print References Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cost per case $ 6.50 4.00 5.00 $15.50 References Variable selling and administrative costs amount to $0.60 per case. Budgeted fixed manufacturing overhead is $567,000 per year, and fixed selling and administrative cost is $41,000 per year. The following data pertain to the company's first three years of operation. Planned production (in units) Finished-goods inventory (in units), January 1 Actual production (in units) Sales (in units) Finished-goods inventory (in units), December 31 Year 1 81,000 0 81,000 81,000 0 Year 2 81,000 0 81,000 57,500 23,500 Year 3 81,000 23,500 81,000 92,750 11,750 Actual costs were the same as the budgeted costs. Required: Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. What will be the difference between absorption-costing income and variable-costing income in year 4? Difference in reported income Req 1A Req 1B Req 2 Req Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using varia Year 1 Year 2 Year 3 Sales revenue Variable expenses: Variable manufacturing costs Variable selling and administrative $ 0 $ 0 $ 0 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Operating income $ 0 $ 0 $ 0 4 1 points Required: 1. Prepare operating income statements for Chataqua Can Company for its first three years of operations using: a. Absorption costing. b. Variable costing. 2. Reconcile Chataqua Can Company's operating income reported under absorption and variable costing for each of its first three years of operation. Use the shortcut method. 3. Suppose that during Chataqua's fourth year of operation actual production equals planned production, actual costs are as expected, and the company ends the year with no inventory on hand. a. What will be the difference between absorption-costing income and variable-costing income in year 4? b. What will be the relationship between total operating income for the four-year period as reported under absorption and variable costing? eBook Print References Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costing. Year 1 Year 2 Year 3 Sales revenue Less: Cost of goods sold Gross margin Selling and Administrative Expenses Variable selling and administrative $ 0 $ 0 $ 0 MAC Check my work 4 Complete this question by entering your answers in the tabs below. 1 points Req 1A Req 1B Reg 2 Req 3A Req 3B Prepare operating income statements for Chataqua Can Company for its first three years of operations using absorption costin eBook Year 1 Year 2 Year 3 Print Sales revenue References $ 0 $ 0 $ 0 Less: Cost of goods sold Gross margin Selling and Administrative Expenses Variable selling and administrative Fixed selling and administrative Operating income $ 0 $ 0 $ Reg 1A Req 1B 4 Problem 8-38 Variable Costing and Absorption Costing Income Statements; Reconciling Reported Operating Income (LO 8-2, 8-3, 8-4) 1 points Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $30. The variable costs of production for one case of cans are as follows: eBook Print References Direct material Direct labor Variable manufacturing overhead Total variable manufacturing cost per case $ 6.50 4.00 5.00 $15.50 References Variable selling and administrative costs amount to $0.60 per case. Budgeted fixed manufacturing overhead is $567,000 per year, and fixed selling and administrative cost is $41,000 per year. The following data pertain to the company's first three years of operation. Planned production (in units) Finished-goods inventory (in units), January 1 Actual production (in units) Sales (in units) Finished-goods inventory (in units), December 31 Year 1 81,000 0 81,000 81,000 0 Year 2 81,000 0 81,000 57,500 23,500 Year 3 81,000 23,500 81,000 92,750 11,750 Actual costs were the same as the budgeted costs. Required