Variable and Absorption Costing Summarized data for 2019 (the first year of operations) for Gorman Products, Inc., are as follows: Sales (70,000 units) $2,800,000 Production costs (80,000 units) Direct material 880,000 Direct labor 720,000 Manufacturing overhead: Variable 544.000 Fixed 320,000 Operating expenses Variable 175,000 Fixed 240,000 Depreciation on equipment 60,000 Real estate taxes 18.000 Personal property taxes (inventory equipment 28,800 Personnel department expenses 30,000 a. Prepare an income statement based on full absorption costing, Only use a negative sign with your answer for net income (loss)If the answer represents a net loss. Otherwise, do not usen number, when applicable. Absorption Costing Income Statement a. Prepare an income statement based on full absorption costing Only use a negative sign with your answer for net income toss), if the answer represents a pet loss. Otherwise do not use negative signs with any answers. Round answers to the nearest whole number, when applicable Absorption Casting Income Statement Sales $ 2.500.000 Cost of Goods Sold Beginning into 5 0000 Direct materials 720,000 Direct labor 4000 M Gross profit X 120.000 O Las Ending invertory Cost of Goods Sold 2.156.000 Operating experts 415.000 Variatie manufacturing over 220.000 5 Netico b. Prepare an income statement based on variable conting Only use a negative sign with your answer for net income of the answer tepresents a netloss. Otherwise, do not use negative sir with any answers found inwurs to the nearest whole number when applicable Vartatile Curting Income Statement 2.100.000 Variant of Good Spanien 880,000 720.000 1 0 0.00 b. Prepare an income statement based on variable costing Only use a negative sign with your answer for net income (los) if the answer represents a net loss. Otherwise, do not use negative signs with any antwers Hound answers to the nearest whole number, when applicable. Variable Costing Income Statement Variable cost of Goods Sold Beginning Directa Det Groot Les Ending way Variables sold variatireateupees Carrar $ 890,000 720.000 540,000 000 * 14 2.051.000 7.00 Va mungon 0.00 O Tot 119.000 Acme that you must decide whether to accept aspect on the 1000 which income statement the most dan data are con Det the loss on the under based on My Subscriptions maran Sed costs Variable manufacturing overhead Operating expenses Total Feed Cost recome 0000 OX OM 100 Assume that you must decide quickly whether to accept a special one time order for 1.000 units for $25 per unit Which income statement presents the most relevant data variable costing . Determine the apparent profitar loss on the special order based solely on these data U negative in with your answer the special order creates an apparent loss Round answer to the nearest whole number O x d. ir the ending inventory is destroyed by fire, which contpproach would you use as a basis for filing an insurance claim for the fire foss? Why? Select the most appropriate statement Absorption costing approach because the cost should include a reasonable portion of manufacturincos Variable conting approach tease the cost should dearable portion of foed maacturing con Mark 1,00 out of 100 Check