Exercises 18-44 Profit Centers: Comparison of Variable and Full Costing [LO 18-3, 18-4) Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning Inventory In the year. These data summarize the current and prior year operations: Prior Year 2,800 units 4,200 units Current Year 5,200 units 4,200 units Sales Production Production cost Factory-variable (per unit) -fixed Marketing-variable Administrative-fixed $ 0.60 $ 2,000 $ 0.40 $ 500 $ 0.60 $ 2,000 $ 0.40 $ 500 Required: 1. Prepare an Income statement for each year based on full costing. 2. Prepare an Income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating Income resulting from using the full costing method and variable costing method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for each year based on full costing. YALE COMPANY Full Costing Income Statement Prior Year $ Current Year 8,400 15,600 Sales Less: Cost of goods sold Beginning inventory Cost of goods produced Ending inventory Available for sale 3.080 5.720 Cost of goods sold Gross margin Less: Selling and administrative costs Operating income Required 1 Required 2 >