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Prepare income statements for each year using both the Full Costing and the Variable Costing methods. 2. Reconcile any difference in net income each
Prepare income statements for each year using both the Full Costing and the Variable Costing methods. 2. Reconcile any difference in net income each year. last 3 years: Unit sales Unit sales price Production in units Beginning inventory-units Ending inventory-units Unit variable production costs Unit S and A costs Fixed overhead costs Fixed S and A costs 2016 10,000 $ 15 10,000 -0- -0- $8 $ 0.50 $30,000 $20,000 following activity during the 2017 8,000 $15 10,000 -0- 2,000 $8 $ 0.50 $30,000 $20,000 2018 12,000 $15 10,000 2,000 -0- $8 $ 0.50 $30,000 $20,000
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Absorption costing Variable costing Unit Variable Product Cost 8 8 Fixed Manufacturing Overhead 30000 10000 Units Produced 3 0 Total Unit Cost 11 8 Under absorption costing Fixed manufacturing overhea...Get Instant Access to Expert-Tailored Solutions
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