O Post + 21% 15:40 20210527111916D6181_Asg1-W2-ACCT7066_2030-3 n : Teks di Bahasa Inggris (Amerika Serikat) belum... Question 3 Bertand, CEO of Creative Industries, is concerned about the recent volatility in the company's operating income. He believes that since the number of units sold has been fairly stable over the past three years that operating income also should have been stable. Bertand asked Peter, Creative's inventory manager, to help his understand the issue. Peter reviewed the company's records and compiled the following changes to Finished Goods Inventory (in units) for the years 2019, 2020, and 2021. Beginning inventory Production Sales Ending inventory 2019 1,000 40,000 (39,000) 2,000 Year 2020 2,000 38,000 (39,500) 500 2021 500 40,000 (39,500) 1,000 Peter also gathered the 2019 income statements prepared using absorption costing and variable costing, which follow. $4,290,000 Income Statement-Absorption Costing Sales Cost of goods sold Units in beginning inventory Units sold from current year production Total cost of goods sold Gross margin Selling expense Operating Income Income Statement-Variable Costing Sales Variable production expenses Variable selling expenses Contribution margin Fixed manufacturing expenses Fixed selling expenses Operating income (90,000) (3,420,000) (3,510,000) 780,000 (645,000) $ 135,000 $4,290,000 (2,028,000) (195,000) 2,067,000 (1,520,000) (450,000) $ 97,000 Instructions: 1. Compute the unit product cost for 2019, 2020, and 2021 for variable and absorption costing! Assume costs do not change from one year to the next. 2. Prepare variable and absorption costing income statements for 2020 and 2021! Pg. 3 = : |||