Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in ten-gallon containers, which have the following price and variable costs.

Sales price	$	46
Direct material		17
Direct labor		11
Variable overhead		10

Budgeted fixed overhead in 20x1, the companys first year of operations, was $600,000. Actual production was 200,000 ten-gallon containers, of which 190,000 were sold. Skinny Dippers, Inc. incurred the following selling and administrative expenses.

Fixed	$	200,000		for the year
Variable	$	3		per container sold

Required:

1. 1. Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing.

2. 2-a. Prepare operating income statements for 20x1 using absorption costing.

3. 2-b. Prepare operating income statements for 20x1 using variable costing.

4. 3. Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ.

5. 4. Reconcile the operating income reported under the two methods using the shortcut method.

Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing. Per Unit Product Cost a. Variable costing b. Absorption costing Reg 1 Req 2A Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare operating income statements for 20x1 using absorption costing. SKINNY DIPPERS, INC. Absorption-Costing Operating Income Statement For the Year Ended December 31, 20X1 Selling and Administrative Expenses Req 1 Req 2B > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Req 3 Reg 4 Reconcile the operating income reported under the two methods by listing the two key places where the income state differ. Subtotal Total Difference in operating income