E9-25 (similar to) The Moreno Company manufactures trendy, high- quality moderately priced watches. As Moreno's senior financial analyst, you are asked to recommend a method of inventory costing The CFO will use your recommendation to prepare Moreno's 2017 income statement The following data are for the year ended December 31, 2017 EEB (Click the icon to view the data.) Assume standard costs per unit are the same for units in beginning inventory and units produced during the year Also, assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs Requirement 1. Prepare income statements under variable and absorption costing for the year ended December 31,2017 Begin by preparing the income statement under variable costing for the year ended December 31, 2017 Complete the top half of the ince Variable costing HW Score: 34 1% -Quest Requirements 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2017 2. What is Moreno's operating income as percentage of revenues under each costing method? 3. Explain the difference in operating income between the two methods 4. Which costing method would you recommend to the CFO? Why? me statement first, then complete the bottom portion ete the top half of the income statement first, then complete the bottom portion Data Table Beginning inventory, January 1,2017 Ending inventory, December 31, 2017 2017 sales Selling price (to distributor Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold 88,000 units 32000 units 315,000 units 21.50 per unit 5.10 per unit S 1.50 per unit solid $ s 1.242.000 5,400 costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 50 units per machine-hour S 1,110,000 Print Done Che Clear Al Requirement 1. Prepare income statements under variaible and absorption conting for the year anded December 31, 2017