part 1

part 2

part 3

Absorption costing operating income is________(higer than or lower than) variable costing operating income. This is because absorption costing defers $ ____ of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing __ the fixed manufacturing overhead during the year.

Variable costing expenses $___(less/more) costs during the year, so variable costing operating income is $_____(less/more) than absorption costing income the year.

costing) and contribution margin (variable costing) income statements for Rick's Radical Eyewear for the year, Begin with the convontional Data table The annual dats that follows pertain to Shady, a manufacturer of swimming goggles (the company had no beginning inventory): (Click the ioan to view the data) Read the requirertents, Requirement 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Shady for the yoar, Begin with the conventional (absorp income stabement. Contribution Margin (Variable Costing) Incon For the Year Ended December 31 Sales revenue Less: Variable expenses Variable cost of goods sold Variable operating expenses Contribution margin Less: Fixed expenses Fixed manufacturing overhead Fixed operating expenses Operating income