Louis Meals produces frozen? meals, which it sells for $8 each. The company uses the FIFO inventory costing? method, and it computes a new monthly fixed 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:

Requirements

1.	Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February.
2.	Prepare separate monthly income statements for January and for? February, using the? following: a. Absorption costing b. Variable costing.
3.	Is operating income higher under absorption costing or variable costing in? January? In? February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.

3. ls operating income higher variable costing in January? In February? Explain the pattern of differences in operating income ono based der absorption costing or Requirement 3. s operating income higher under absorption costing or variable costing in January? In February? Explain the pattem of differences in operating incor In January, absorption costing operating income variable costing income. This is because units produced were units sold costs in the units of ending inventory. These costs will not be Absorption costing defers some of costs to the future January's absorption costing income. units sold for th Y variable costing operating income. This is because units produced were In February, absorption costing operating income Y costs that absorption costing assigned to that inventory ar As inventory as was the case in this February, January's absorption costing income choose from any list or enter any number in the input fields and then continue to the next question. O Ask me anything