Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,500 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $2,800,000, and fixed administrative expenses were $500,000.

Prepare income statements for each year using absorption costing.

Please fill the answers according the boxes below

JACKSON COMPANY For the Yea Ended December 3 2016 Absorption costing Cost of Goods Sold Inventori Janua Costs of Goods Manufactured Costs of Goods Available for Sale nventory, December 3 Gross Profi Variable elling Expenses Fixed Admin ive Expenses 7000000 2668750 168750