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Mark's Meals produces frozen meals, which it solls for $ each. The company uses the FIFO Inventory costing method, and it computes a new monthly

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Mark's Meals produces frozen meals, which it solls for $ each. The company uses the FIFO Inventory costing method, and it computes a new monthly feed manufacturing overhand rate based on the actual number of rock produced the month Alcoin and production levels are exactly as planned. The following data are from the company's first two months in business (click the con to wow the data Read the costing costing costing costing Tot producto 540 5.00 $ 5.00 Forquirement 2. Prepare separato money income tomenta for January and hot February, wang bertion coming Mark Meals Income Statement (Absorption Conting Month Ended January 31 February 20 rens 12.600 16200 7.560 9900 Cost of goods sold Gross proti 5.040 6300 3,400 Less Operating expenses 1,640 Operating income ch it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing ction levels are exactly as planned. The following data are from the company's first two months in business: Data Table costing 5.00 $ S ily income statement eals sorption Costing) ded January 31 January Sales 1,400 meals Production 2,000 meals Variable manufacturing expense per meal $5 Sales commission expense per meal $2 Total fixed manufacturing overhead $800 Total fixed marketing and administrative expenses .. $600 February 1,800 meals 1,600 meals $5 +++ $2 $ $800 .. 12,600 7,560 $600 5,040 3,400 Print Done $ 1,640 then click Check Answer. Clar All for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufact is are exactly as planned. The following data are from the company's first two months in business: ng 5.00 Requirements $ statements fo Costing) 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. nuary 31 12,600 7,560 5,040 3,400 Print Done 1,640 Check

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