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 4,300 tons of plastic and sold 3,440 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 16% of the sales price of units produced, variable selling expenses were 11% of the selling price of units sold, fixed manufacturing costs were $2,795,000, and fixed administrative expenses were $450,000.

Prepare income statements for each year using variable costing.

Prepare income statements for each year using absorption costing.

Reconcile the differences each year in net income under the two costing approaches.

Jackson Company produces plastic that is used for injection modic lications such as for small motors. In 2016, the first year of operations. Jackson produced 4300 tons of plastic and sold 3.440 tons. In 2017, the production and sales results were cactyreversed in each year, the selling price perton was $2.200 variable manufacturing costs were 16% of the sales price of units produced, variable selling expenses were 11% of the selling price of units solded manufacturing costs were $2.795,000, and found administrative expenses were $450,000 Prepare income statements for each year using variable costing JACKSON COMPANY Income Statement Variable Costing JACKSON COMPANY Income Statement Variable Costing Prepare income statements for each year using absorption costing JACKSON COMPANY Income Start Absorption Costing JACKSON COMPANY Income Statement Absorption Casting eTextbook and Media Reconcile the differences each year in net income under the two costing approaches. Feda cturing overhead expensed with variable costing Les Fremanturing Overhead x ed with abortion costing Difference Absorption costing net income