Ned's Entrees produces frozen meals, which itsells for $7 each. The company uses the FIFO inventory conting method, and it corres a new month food manufacturing where bed on the cure produced month. Al costs and production levels are exactly as planned. The following data are from the company's first two months in bus Click the icon to view the data) Read the requirements 4 Requirement 1. Compute the product cost pee meal produced under absorption costing and under variable conting. Do this first to January and then for February January February Absorption Variable Absorption Variable costing costing costing costing 44 45 Total product cost Requirement 2a. Prepare separat monthly income statements for January and for February, using Worption coming Ned's Entrees Income Statement (Absorption Costing Month Ended January 31 February 20 Sales revenue Fixed operating expenses Requirement 2b. Prepare Ned's Entrees January and February income statements using variable costing number in the input fields and then continue to the next question Ned's Entrees produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method month. All costs and production levels are exactly as planned. The following data are from the company's first two mont Click the icon to view the data.) Read the requirements Month Ended January 31 February 28 Sales revenue Less: Less Fixed operating expenses Requirement 2b. Prepare Ned's Entrees' January and February income statements using variable costing Ned's Entrees Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less: Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. Is operating Income under absorption costing or recting in January? Is Foruy? Explanatim of differences in operating income based on a In January, absorption conting operating income variable costing incomeThis is because its produced were Bold Absorption costing defers some of costs in the landing overtory. These costs will not be entero. Defeningen costs to the future January's abortion costing income un sold for the month In February, absorption costing operating income variable conting income. This is because its produced were As invertory as was the case in this ry, January costs to come to the very income . This Forning Choose from any list or enter any number in the input fields and then continue to the next question i Data Table January February Sales . 1,500 meals 1,900 meals ... 1,600 meals $4 Production 1.2.000 meals Variable manufacturing expense per meal $4 Sales commission expense per meal $2 Total fixed manufacturing overhead $800 Total fixed marketing and administrative expenses .. $600 $2 --- $800 $600 Print Done