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Please help with this example for all the questions. Cheers :) Question 3 (Past Final Question): Quebec Corp. is a manufacturer of specialty in-line skates.
Please help with this example for all the questions. Cheers :)
Question 3 (Past Final Question): Quebec Corp. is a manufacturer of specialty in-line skates. The operating results for 2016 are as follows: There was no beginning finished goods inventory. Required: A. Assuming the company uses Throughput costing method: 1. Prepare the Throughput costing income statement for 2016. 2. Reconcile the difference in net income between the Variable costing and Throughput-costing methods. 3. Reconcile the difference in net income between the Absorption costing and Variable-costing methods. B. Assuming the company uses the budgeted volume of 25,000 pairs to allocate the fixed overhead rate rather than the actual production volume of 20,000 pairs. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Prepare the income statement for 2016 under Normal Absorption costing. 2. Reconcile the difference in net income between the Normal Absorption costing and Absorption-costing methodsStep by Step Solution
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