Hi emu-expert. I was wondering if you could help me with the following accounting assignment? I attached the document for your review and action. This is due by Friday 9:00pm EST.

McGraw-Hill Module 6 Problems Question 1) Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $27 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into workin process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows: Year 1 Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Year 2 2,900 3,400 $18,020 $ 21,420 2,900 2,400 12,72 0 21,42 0 Selling and administrative costs: Variable 11,600 Fixed 10,600 11,60 0 10,60 0 Selected information from Lehighton's yearend balance sheets for its first two years of operation is as follows: LEHIGHTON CHALK COMPANY Selected Balance Sheet Information Based on absorption costing End of Year 1 Finished-goods inventory $ 5,800 16,96 Retained earnings 0 Based on variable costing Finished-goods inventory Retained earnings 1. End of Year 1 $ 2,650 13,81 0 End of Year 2 $ 0 30,42 0 End of Year 2 $ 0 30,42 0 Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement: Cost of goods sold Fixed cost (expensed as a period expense) Year 1 1 Year 2 McGraw-Hill Module 6 Problems 2 Subtotal 3 Total $ $ 4 5 Difference in Operating income $ $ ** Each numbered row, 1, 2, 3, 4, 5 have multiple choices in terms for your selection. ** Options are: 1Cost of goods sold under absorption costing Fixed manufacturing overhead under variable costing Sales revenue Veritable manufacturing cost under variable costing Variable selling administrative cost. 2 & 3 (same options) Cost of goods sold under absorption costing Fixed manufacturing overhead as period expense under variable costing Sales revenue Veritable manufacturing cost under variable costing Variable selling administrative cost. 4Operating income under variable costing Operating loss under variable costing. 5Add: operating income under absorption costing Less: operating income under absorption costing. 2. What was Lehighton's total operating income across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 3. What was the total sales revenue across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 4. What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 5. Subtract the total costs expensed across both years [requirement (4)] from the total sales revenue across both years [requirement (3)]: (a) under absorption costing and (b) under variable costing. Absorption costing = Variable costing = McGraw-Hill Module 6 Problems 6. Considering the results obtained in requirements 1-5 above, select which of the following statements (is) are true by selecting an "X". a. Sales revenue is different depending on the costing method used. _____ b. Timing is the key in distinguishing between absorption and variable costing. ____ c. Since Lehighton's combined operating income, across the two-year period, is the same under both absorption and variable costing, then the operating income must be the same with in each year under both methods. ____ d. The difference between absorption and variable costing is caused by the timing with which expenses are recognized. ____ Question 2) Lehighton Chalk Company had no beginning or ending workinprocess inventories for either year. Using the same data: Year 1 Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Year 2 2,900 3,400 $18,020 $ 21,420 2,900 2,400 12,72 0 21,42 0 Selling and administrative costs: Variable 11,600 Fixed 10,600 11,60 0 10,60 0 Selected information from Lehighton's yearend balance sheets for its first two years of operation is as follows: LEHIGHTON CHALK COMPANY Selected Balance Sheet Information Based on absorption costing End of Year 1 Finished-goods inventory $ 5,800 16,96 Retained earnings 0 Based on variable costing Finished-goods inventory Retained earnings End of Year 1 $ 2,650 13,81 0 End of Year 2 $ 0 30,42 0 End of Year 2 $ 0 30,42 0 1. Prepare operating income statements for both years based on absorption costing. McGraw-Hill Module 6 Problems YEAR 1 YEAR 2 $ $ $ $ $ $ 1 Cost of Goods Sold 2 3 4 5 6 7 8 9 ** each numbered row, 1, 2, 3, 4, 5, 6, 7, 8, 9 have multiple choices in terms for your selection.** Options are: 1Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue 2, 3, 4, 5, 6 (same options) Beginning finished goods inventory Cost of goods available for sale Cost of goods manufactured Cost of goods sold Ending finished goods inventory Variable selling and administrative cost 7Contribution margin Contribution loss Gross margin Gross loss 8Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue 9Operating income Operating loss 2. Prepare operating income statements for both years based on variable costing. Year 1 1 Cost of Goods Sold 2 Year 2 McGraw-Hill Module 6 Problems 3 4 5 6 7 Total variable cost 8 $ $ $ $ $ $ $ $ $ $ Fixed cost 9 10 Total fixed cost 11 ** Each numbered row, 1 through 11, have multiple choices in terms for your selection. ** Options are: 1Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue 2, 3, 4, 5, 6, 7 (same options) Beginning finished goods inventory Cost of goods available for sale Cost of goods manufactured Cost of goods sold Ending finished goods inventory Variable selling and administrative cost 8Contribution margin Contribution loss Gross margin Gross loss 9 & 10 (same options) Cost of goods available for sale Cost of goods manufactured Fixed manufacturing cost Fixed selling and administrative expenses Unearned revenue 11Operating income Operating loss 3. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and (2). Year Change in inventory (units) Actual fixedoverhead rate Difference in fixed overhead Absorption minus variable-costing operating income McGraw-Hill Module 6 Problems expensed 1 Up or Down X 2 Up or Down X Underline the answer for the change in inventory. McGraw-Hill Module 6 Problems Question 1) Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $27 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-inprocess inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows: Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: Variable Fixed Year 1 Year 2 2,900 2,900 3,400 2,400 $ 18,020 $ 12,720 21,420 21,420 11,600 10,600 11,600 10,600 Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows: 1. LEHIGHTON CHALK COMPANY Selected Balance Sheet Information Based on absorption costing End of Year 1 Finished-goods inventory $ 5,800 Retained earnings 16,960 End of Year 2 $ 0 30,420 Based on variable costing Finished-goods inventory Retained earnings End of Year 2 $ 0 30,420 End of Year 1 $ 2,650 13,810 Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement: Cost of goods sold Fixed cost (expensed as a period expense) Year 1 Year 2 1 2 Subtotal 3 Total $ $ 4 5 Difference in Operating income $ $ ** Each numbered row, 1, 2, 3, 4, 5 have multiple choices in terms for your selection. ** McGraw-Hill Module 6 Problems Options are: 1Cost of goods sold under absorption costing Fixed manufacturing overhead under variable costing Sales revenue Veritable manufacturing cost under variable costing Variable selling administrative cost. 2 & 3 (same options) Cost of goods sold under absorption costing Fixed manufacturing overhead as period expense under variable costing Sales revenue Veritable manufacturing cost under variable costing Variable selling administrative cost. 4Operating income under variable costing Operating loss under variable costing. 5Add: operating income under absorption costing Less: operating income under absorption costing. 2. What was Lehighton's total operating income across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 3. What was the total sales revenue across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 4. What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing? Absorption costing = Variable costing = 5. Subtract the total costs expensed across both years [requirement (4)] from the total sales revenue across both years [requirement (3)]: (a) under absorption costing and (b) under variable costing. Absorption costing = Variable costing = 6. Considering the results obtained in requirements 1-5 above, select which of the following statements (is) are true by selecting an "X". a. Sales revenue is different depending on the costing method used. _____ b. Timing is the key in distinguishing between absorption and variable costing. ____ c. Since Lehighton's combined operating income, across the two-year period, is the same under both absorption and variable costing, then the operating income must be the same with in each year under both methods. ____ d. The difference between absorption and variable costing is caused by the timing with which expenses are recognized. ____ McGraw-Hill Module 6 Problems Question 2) Lehighton Chalk Company had no beginning or ending work-in-process inventories for either year. Using the same data: Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: Variable Fixed Year 1 Year 2 2,900 2,900 3,400 2,400 $ 18,020 $ 12,720 21,420 21,420 11,600 10,600 11,600 10,600 Selected information from Lehighton's year-end balance sheets for its first two years of operation is as follows: LEHIGHTON CHALK COMPANY Selected Balance Sheet Information Based on absorption costing End of Year 1 Finished-goods inventory $ 5,800 Retained earnings 16,960 End of Year 2 $ 0 30,420 Based on variable costing Finished-goods inventory Retained earnings End of Year 2 $ 0 30,420 End of Year 1 $ 2,650 13,810 1. Prepare operating income statements for both years based on absorption costing. YEAR 1 YEAR 2 $ $ $ $ $ $ 1 Cost of Goods Sold 2 3 4 5 6 7 8 9 ** each numbered row, 1, 2, 3, 4, 5, 6, 7, 8, 9 have multiple choices in terms for your selection.** Options are: 1Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue McGraw-Hill Module 6 Problems 2, 3, 4, 5, 6 (same options) Beginning finished goods inventory Cost of goods available for sale Cost of goods manufactured Cost of goods sold Ending finished goods inventory Variable selling and administrative cost 7Contribution margin Contribution loss Gross margin Gross loss 8Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue 9Operating income Operating loss 2. Prepare operating income statements for both years based on variable costing. Year 1 Year 2 $ $ $ $ $ $ $ $ $ $ 1 Cost of Goods Sold 2 3 4 5 6 7 Total variable cost 8 Fixed cost 9 10 Total fixed cost 11 ** Each numbered row, 1 through 11, have multiple choices in terms for your selection. ** Options are: 1Cost of goods available for sale Cost of goods manufactured Sales revenue Selling and administrative expenses Unearned revenue McGraw-Hill Module 6 Problems 2, 3, 4, 5, 6, 7 (same options) Beginning finished goods inventory Cost of goods available for sale Cost of goods manufactured Cost of goods sold Ending finished goods inventory Variable selling and administrative cost 8Contribution margin Contribution loss Gross margin Gross loss 9 & 10 (same options) Cost of goods available for sale Cost of goods manufactured Fixed manufacturing cost Fixed selling and administrative expenses Unearned revenue 11Operating income Operating loss 3. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and (2). Year Change in inventory (units) Actual fixedoverhead rate 1 Up or Down X 2 Up or Down X Underline the answer for the change in inventory. Difference in fixed overhead expensed Absorption minus variable-costing operating income