JJMB manufactures snowboards. JJMB began 2020 with an inventory of 260 boards. During the year, it produced 1,000 boards and sold 1,020 for $770 each. Fixed production costs were $130,000, and variable production costs were $340 per unit. Fixed advertising, marketing, and other general and administrative expenses were $122,000, and variable shipping costs were $15 per board. Assume that the cost of each unit in beginning inventory is equal to 2020 inventory cost. JJMB uses a denominator level of 1,000 units Read the requirements Requirement 1. Prepare an income statement assuming JJMB uses variable costing. Complete the top half of the income statement first, then complete the bottom portion. (Use parentheses or a minus sign for an operating loss.) Requirement 2. Prepare an income statement assuming JJMB uses absorption costing. JJMB uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Complete the top half of the income statement first, then complete the bottom portion. (Do not round intermediary calculations Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign for an operating loss.) Adjustment for production-volume variance Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Deduct ending inventory Fixed manufacturing costs Fixed selling and administrative costs Gross margin Operating income (loss) Revenues Variable cost of goods sold Variable manufacturing costs Variable shipping costs namn ntntomont arcuming Requirement 2. Prepare an income statement assuming JJMB uses absorption costing. JJMB uses a denominator level of 1,000 units. Production-volume variances are written off to cost of goods sold. Complete the top half of the income statement first, then complete the bottom portion (Do not round intermediary calculations Only round the amount you input in the cell to the nearest dollar. Use parentheses or a minus sign for an operating loss.) Requirement 3. Compute the breakeven point in units sold assuming JJMB uses (a) Variable costing and (b) Absorption costing. Provide proof of your breakeven calculations. nventory of 260 boards. During the 30,000, and variable production co \xpenses were $122,000, and varia y is equal to 2020 inventory cost. J Adjustment for production-volume variance Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Buses absorption costing. JJMB U pods sold. Deduct ending inventory plete the bottom portion. (Do not ro ar. Use parentheses or a minus sig Fixed manufacturing costs Fixed selling and administrative costs Gross margin Operating income (loss) Revenues Variable cost of goods sold Variable manufacturing costs Variable shipping costs ments. - Requirements 1. Prepare an income statement assuming JJMB uses variable costing. 2. Prepare an income statement assuming JJMB uses absorption costing. Production-volume variances are written off to cost of goods sold. 3. Compute the breakeven point in units sold assuming JJMB uses the following methods. Provide proof of your breakeven calculations. a. Variable costing b. Absorption costing Print Done