Income Statements and Firm Performance: Variable and Absorption Costing

Jellison Company had the following operating data for its first two years of operations:

Variable costs per unit:

Direct materials

Direct labor

Variable overhead

$4\mathrm{.}00$

$$2\mathrm{.}80$

$1\mathrm{.}40$

Fixed costs per year:

Overhead $180,000$

Selling and administrative $70,400$

Jellison produced $90,000$ units in the first year and sold $80,000.$ In the second year, it produced $80,000$ units and soll $90,000$ units. The selling price per unit each year was $$12.$ Jellison uses an actual costing system for product costing.

Required:

Prepare income statements for both years using absorption costing. If an amount is zero, enter $"$O$".$

Jellison Company

Absorption$-$Costing Income Statement

Prepare income statemenks for toth yes$-$s using absorption costirg If an amount is zero, enter

Jellison Company

Absorption$-$Costing Income statement For Years $1$ snd $2$

sellison coanpany

Varlabie$-$Costing Incores Ststement For Years $1$ and $2$

Impeurese

Dedines

$4$