Problem IV Jokarie Company developed the following unit information for January 2019. its first month of operations: Per Unit Total Costs Sales price $20 Variable costs Direct materials Direct labor Variable manufacturing overhead Selling and administrative expenses Ficed selling and administrative expenses $22.000 Ficed manufacturing overhead 36.000 12,000 units were produced, and 9.000 units were sold during January 2019 Instructions (a) Prepare an income statement under the variable costing approach using the CVP format. (b) Prepare an income statement under the absorption costing approach. (c) Prepare a reconciliation schedule of both. Solution Problem IV (a) Variable Costing Income Statement Income Statement (Variable Costing) Sales Variable costs: Total Variable costs Contribution Margin Fixed Costs Total Fixed Costs Net Income (Loss) or Income (loss) from operation (b) Absorption Costing Income Statement Income Statement Sasst of GaGoods Big (Absorption Costing Sales Cost of Goods Sold: Finished Goods Beg. Inventory Cost of Goods Manufactured = Cost of Goods Available for Sale Finished Goods Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Total Operating Expenses Net Income (loss) or Income (loss from operating (e) The variable costing and the absorption costing income from operations reconciliation: January 2019 Variable costing income (loss) Fixed MOH expensed with variable costing Less: Fixed MOH expensed with absorption costing Difference Absorption costing income IS