Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2019, the first year of operations, Jackson produced 4,000 tons of plastic and sold 3,100 tons. In 2020, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,100, variable manufacturing costs were 18% of the sales price of units produced, variable selling expenses were 9% of the selling price of units sold, fixed manufacturing costs were $2,800,000, and fixed administrative expenses were $530,000. Prepare income statements for each year using variable costing. JACKSON COMPANY Income Statement For the Year Ended December 31, 2019 Variable Costing Sales $ Variable Cost of Goods Sold Inventory, January 1 Variable costs of Goods Manufactured Variable Costs of Goods Available for Sale Inventory, December 31 Variable Cost of Goods Sold LLLLLLLL Variable Selling Expenses Contribution Margin Fixed Manufacturing Overhead Fored Administrative Expenses Net Income (Loss) JACKSON COMPANY Income Statement For the Year Ended December 31, 2020 Variable Costing Sales $ Variable Cost of Goods Sold Inventory, January 1 Variable Costs of Goods Manufactured Variable Costs of Goods Available for Sale Inventory, December 31 Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin Fixed Manufacturing Overhead LL LL Fixed Administrative Expenses Net Income (Loss) Prepare income statements for each year using absorption costing. JACKSON COMPANY Income Statement For the Year Ended December 31, 2019 Absorption Costing Sales $ Cost of Goods Sold Inventory, January 1 $ Costs of Goods Manufactured Costs of Goods Available for Sale Inventory, December 31 Cost of Goods Sold LLLL LL LL Gross Profit Variable Seling Expenses Fixed Administrative Expenses Net Income (Loss) JACKSON COMPANY Income Statement For the Year Ended December 31, 2020 Absorption Costing Sales $ Cost of Goods Sold Inventory, January 1 Costs of Goods Manufactured Costs of Goods Available for Sale Inventory, December 31 Cost of Goods Sold LL Gross Profit Variable Selling Expenses Fixed Administrative Expenses Net Income (Loss) $ Reconcile the differences each year in net income under the two costing approaches. 2019 2020 s