Louie's meals produces frozen meals. FIFO inventory

19 U11 comprej in rest Up Louie's Meals produces frozen meals, which it sets for 57 each. The company uses the FIFO inventory costing method, and it compute a new monthly feed manufacturing overhead rate based on the actual number of meals produced that month All costs and production levels are exactly as planned. The following data are from the company's first two months in business (Click the loon to view the data) Requirement 1. Compute the product cost per meal produced under absorption conting and under varlatecoing Do this first for January and then for February January February Absorption Variable Absorption Variable costing costing costing costing Total product.com Requirement 2a. Prepare separate monthly income statements for January and for February, uning asorption costing Louie's Meals Income Statement Absorption Costing Month Ended January 31 February 20 Choose from any or enter any ben the putted and then continue to the next question Louie's Meals Income Statement (Absorption Costing) Month Ended January 31 February 28 Less: Less Louie's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less: Less: Requirement 3. Is operating income Nighet under absorption costing or variable costing in January February? Explain the partem of Gtforces operating income based on absorption costing versus variable costing In January, absorption costing operating income variable costing income. This is because units produced were units sold until those units are sold Deferring these Absorption costing defers some of costs to the future costs in the units of ending inventory These costs will not be January's absorption conting income units sold for the month variable costing operating income. This is because its produced were In February absorption costing operating income costs that absorption costing assigned to that inventory are expensed in This February's As inventory as was the case in this February January's absorption costing income 19 U11 comprej in rest Up Louie's Meals produces frozen meals, which it sets for 57 each. The company uses the FIFO inventory costing method, and it compute a new monthly feed manufacturing overhead rate based on the actual number of meals produced that month All costs and production levels are exactly as planned. The following data are from the company's first two months in business (Click the loon to view the data) Requirement 1. Compute the product cost per meal produced under absorption conting and under varlatecoing Do this first for January and then for February January February Absorption Variable Absorption Variable costing costing costing costing Total product.com Requirement 2a. Prepare separate monthly income statements for January and for February, uning asorption costing Louie's Meals Income Statement Absorption Costing Month Ended January 31 February 20 Choose from any or enter any ben the putted and then continue to the next question Louie's Meals Income Statement (Absorption Costing) Month Ended January 31 February 28 Less: Less Louie's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less: Less: Requirement 3. Is operating income Nighet under absorption costing or variable costing in January February? Explain the partem of Gtforces operating income based on absorption costing versus variable costing In January, absorption costing operating income variable costing income. This is because units produced were units sold until those units are sold Deferring these Absorption costing defers some of costs to the future costs in the units of ending inventory These costs will not be January's absorption conting income units sold for the month variable costing operating income. This is because its produced were In February absorption costing operating income costs that absorption costing assigned to that inventory are expensed in This February's As inventory as was the case in this February January's absorption costing income