LISA Company produces and sells handbags. Below are the information regarding the product for two mostrecent years:

Selling Price per Unit $70

Manufacturing Costs: -

Variable per Unit Produced:

Direct Materials $15

Direct Labor $10

Variable Overhead $5

Fixed per Year $150,000

Selling and Administrative Costs:

Variable per Unit Sold $8

Fixed per Year $100,000

2017 2018

Units in Beginning Inventory 0 2000

Units produced during the year 20,000 11,000

Units Sold during the year 18,000 13,000

Units in Ending Inventory 2000 0

Problem 1

Using the Absorption Costing method, please calculate Unit Product Cost for 2017 and 2018

Problem 2

Using the Absorption Costing method,please calculate the Income Statements for 2017 and 2018

Problem 3

Using the Variable Costing method,please calculate Unit Product Cost for 2017 and 2018

Problem 4

Using the Variable Costing method, please calculate the Income Statements for 2017 and 2018

Problem 5

Reconcile the Variable Costing and Absorption Costing

LISA Company produces and sells handbags. Below are the information regarding the product for two mostreeent years: Selling Price per Unit Manufacturing Costs: Variable per Unit Produced: D . en . . Uh Direct Materials .Variable Overhead Fixed er Year 1) $150, 000 Selling and Administrative Costs: ,Variable per Unit Sold Fixed er Year $100,000 - 201T Units produced during the year 20,00I11,000 Units Sold during the year 18 00I13,000 units in Ending Inventory