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During Durton Company's first two years of operations, the company reported variable costing operating income as shown below. Production and cost data for the two
During Durton Company's first two years of operations, the company reported variable costing operating income as shown below. Production and cost data for the two years are given: The company's $20 unit product cost is computed as follows: Required: 1. Prepare an absorption costing income statement for each year. 2. Reconcile the absorption costing and variable costing operating income figures for each year. (Loss amounts should be indicate by a minus sign.)
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