Required:

Prepare income statements for both years using absorption costing. If an amount is zero, enter $"0".$

Jellison Company

Absorption$-$Costing Income Statement

For Years $1$ and $2$

Prepare income statements for both years using variable costing. If an amount is zero, enter $"0".$

Jellison Company

Variable$-$Costing Income Statement

For Years $1$ and $2$

Less:

Fixed selling and administrative expenses

Operating income

Variable cost of goods sold:

Beqinning inventory

Variable cost of goods manufactured

Goods available for sale

Less: Ending inventory

Cost of goods soldIncome Statements and Firm Performance: Variable and Absorption Costing

Jellison Company had the following operating data for its first two years of operations:

Variable costs per unit:

Direct materials $4\mathrm{.}00$

Direct labor $$2\mathrm{.}80$

Variable overhead $1\mathrm{.}40$

Fixed costs per year:

Overhead $180,000$

Selling and administrative $70,900$

Jellison produced $90,000$ units in the first year and sold $80,000.$ In the second year, it produced $80,000$ units and sold $90,000$ units. The selling price per unit each year was $$12.$ Jellison uses an actual costing system for product costing.