Coswell Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2011, the first year of operations, Coswell produced 5,900 tons of plastic and sold 4,130 tons. In 2012, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,200, variable manufacturing costs were 19% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $3,540,000, and fixed administrative expenses were $548,000.

Coswell Company produces plastic that is used for injection- molding applications such as gears for small motors. In 2011, the first year of operations, Coswell produced 5,900 tons of plastic and sold 4,130 tons. In 2012, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,200, variable manufacturing costs were 19% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $3,540,000, and fixed administrative expenses were $548,000 Prepare income statements for each year using variable costing. COSWELL COMPANY Income Statement For the Year Ended December 31, 2011 Variable Costing COSWELL COMPANY Income Statement For the Year Ended December 31, 2012 Variable Cesting