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 3.700 tons of plastic and sold 2,960 tons. In 2017, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,200, variable manufacturing costs were 15% of the sales price of units produced, variable selling expenses were 9% of the selling price of units sold, fixed manufacturing costs were $2,701,000, and fixed administrative expenses were $590,000. Prepare income statements for each year using variable costing. JACKSON COMPANY Income Statement For the Year Ended December 31, 2016 Variable Costing Sales $ $ $ JACKSON COMPANY Income Statement Variable Costing $ $ $ $ e Textbook and Media Prepare income state ents for each year using absorption costing. JACKSON COMPANY Income Statement Absorption Costing $ $ JACKSON COMPANY Income Statement Absorption Costing $ $ e Textbook and Media Reconcile the differences each year in net income under the two costing approaches. 2016 2017 Variable costing net income $ $ $ $ Fixed manufacturing overhead expensed with variable costing Less: Fixed manufacturing overhead expensed with absorption costing Difference Reconcile the differences each year in net income under the two costing approaches. 2016 2017 Variable costing net income $ $ Fixed manufacturing overhead expensed with variable costing $ $ Less: Fixed manufacturing overhead expensed with absorption costing Difference Absorption costing net income $ $ e Textbook and Media