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Please assist with question below and use data provided: The following table shows Jackson Company's inventory balances. in units. for years 1.2 and 3. Total
Please assist with question below and use data provided:
The following table shows Jackson Company's inventory balances. in units. for years 1.2 and 3. Total xed costs were $20,000 for each ofthe last three years. The units in year 1 beginning inventory were based on production of 500 units. Year 1 2 3 Beginning inventory 40 0 30 Production 100 130 160 Sales 140 100 160 Ending inventory 0 30 30 Your are required to calculate the difference between absorption costing and variable costing operating income for each year. Indicatewhich costing system has the highest income each year. Assume the UFO method is used in year three. Year 1 , v operating income is v by$ Year 2 , v operating income is V by$ Year 3 , v operating incomewill be vStep by Step Solution
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