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

Prepare two income statements for the year. one using absorption costing and one using variable costing.

A) What is the product cost per unit using absorbtion costing?

b) What is the product cost per unit using Variable costing?

c) what is ending inventory balance using absorption costing?

d) what is the ending inventory balance using variable costing

e)what is cost of gold using absorption costing?

f) what is cost of goods sold using variable costing?

g) what is operating income using absorption?

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?

0 Data Table Selling price per unit $ Direct material per unit ...... Direct labor per unit Total annual manufacturing overhead ............... $ Fixed portion of annual manufacturing overhead ... $ Variable operating expenses per unit sold ........ Fixed operating expenses per year in total ........ Units manufactured 48.00 15.00 3.00 209,000 190,000 2.00 46,000 19,000 18,000 Units sold Print Done