Queen Industries has one product. Information about the production and sales of that product for the past year follow.

View the data.

The company had no beginning inventory.

Read the requirements.

Requirement $1.$ Prepare two income statements for the year, one using absorption costing and one using variable costing.

Begin by preparing the income statement for the year using absorption costing.

Queen Industries

Income Statement $($Absorption Costing$)$

For the Year Ended

Data

Prepare two income statements for the$$ year, one using absorption costing and one using variable costing. Use those statements to answer the following$$ questions:

a$.$

What is the product cost per unit using absorption$$ costing?

b$.$

What is the product cost per unit using variable$$ costing?

c$.$

What is the ending inventory balance using absorption$$ costing?

d$.$

What is the ending inventory balance using variable$$ costing?

e$.$

What is cost of goods sold using absorption$$ costing?

f$.$

What is cost of goods sold using variable$$ costing?

g$.$

What is operating income using absorption$$ costing?

$.$H what is operating income using variable$$ costing?

$2.$what is the underlying reason for the difference in operating income between the two costing$$ methods?