Subtract the total costs expensed across both years (requirement 4) from the total sales revenue across both y (requirement 3): (a) under absorption costing and (b) under variable costing. Compute the amount by which the year-end balance in finished-goods inventory declined during year 2 (i.e., between December 31 of year 1 and December 31 of year 2 ): - Using the data from the balance sheet prepared under absorption costing. - Using the data from the balance sheet prepared under variable costing. Complete this question by entering your answers in the tabs below. What was the total of all costs expensed on the operating income statements across both years under absorptio under variable costing? Complete this question by entering your answers in the tabs below. Considering the results obtained in requirements 1-5 above, evaluate the following statements. Note: Select "Yes" if the statement is true, and "No" If it is not. Sales revenue is different depending on the costing method used When the number of units produced equals the number of units sold, total costs expensed will be the same under both costing methods Since Lehighton's combined operating income, across the fwo-year period, is the same Gider both abnorption and variable costing. then the operating income must be the same within each year under both methods The diflerence between absorption and varible costing is caused by the timing with which expenses are recognized Considering the results obtained in requirements 15 above, evaluate the following statements. Complete this question by entering your answers in the tabs below. What was the total sales revenue across both years under absorption costing and under variable costing? Complete this question by entering your answers in the tabs below. Reconcile Lehighton's operating income reported under absorption and varlable costing, during each year, by comparing the following two amounts on each income statement: - Cost of goods sold - Fixed cost (expensed as a period expense) - Fixed cost (expensed as a period expense) 2. What was Lehighton's total operating income across both years under absorption costing and under variable costir 3. What was the total sales revenue across both years under absorption costing and under variable costing? 4. What was the total of all costs expensed on the operating income statements across both years under absorption under variable costing? 5. Subtract the total costs expensed across both years (requirement 4) from the total sales revenue across both years (a) under absorption costing and (b) under variable costing. 6. Considering the results obtained in requirements 1-5 above, evaluate the following statements. Complete this question by entering your answers in the tabs below. What was Lehighton's total operating income across both years under absorption costing and under variable costing? Notice that the retained earnings balance at the end of both years 1 and 2 on the balance sheet prepared unde corresponding retained earnings balance on the statement prepared under variable costing. Will this relationshi Will this relationship hold true at any balance sheet date? Required information [The following information applies to the questions displayed below.] Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the case at $23 per unit Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year, actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows. Selected information from Lehighton's year-end balance sheets for its two years of operation is as follows: 4. Compute the amount by which the year-end balance in finished-goods inventory declined during year 20 .e, between December 3 of year 1 and December 31 of year 2): - Using the data from the balance sheet prepared under absorption costing. - Using the data from the balance sheet prepared under variable costing 5. Refer to your calculations from requirement 4. Compute the difference in the amount by which the year-end balances in finishedgoods inventory declined under absorption versus variable costing. Then compare the amount of this difference with the difference in the company's reported operating income for year 2 under absorption versus variable costing 6. Notice that the retained earnings balance at the end of both years 1 and 2 on the balance sheet prepared under absorption costing is greater than or equal to the corresponding retained earnings balance on the statement prepared under variable costing Will this relationship hold true at any balance sheet date? Complete this question by entering your answers in the tabs below. Compute the amount by which the year-end balance in finished-goods inventory declined during year 2 . L.e, between December 31 of year 1 and December 31 of year 2 ) : - Using the data from the balance sheet prepared under absorption costing. - Using the data from the balance shest prepared under variable costing. 1. Reconcile Lehighton's operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement: - Cost of goods sold - Fixed cost (expensed as a period expense) 2. What was Lehighton's total operating income across both years under absorption costing and under variable costing? 3. What was the total sales revenue across both years under absorption costing and under variable costing? 4. What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing? 5. Subtract the total costs expensed across both years (requirement 4) from the total sales revenue across both years (requirement 3) (a) under absorption costing and (b) under variable costing 6. Considering the results obtained in requirements 1.5 above, evaluate the following statements. Complete this question by entering your answers in the tabs below. in the company's reported operating income for year 2 under absorption versus variable costing. 6. Notice that the retained earnings balance at the end of both years 1 and 2 on the balance sheet prepared under absor is greater than or equal to the corresponding retained earnings balance on the statement prepared under variable cos relationship hold true at any balance sheet date? Complete this question by entering your answers in the tabs below. Refer to your calculations from requirement 4, Compute the difference in the amount by which the year-end balances in finished-goods inventory declined under absorption versus variable costing. Then compare the amount of this difference wit! the difference in the company's reported operating income for year 2 under absorption versus variable costing. Note: Negative amounts should be indicated by a minus sign