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Whitlock Company produced 10,000 cases of cookies this year. It sold 9,000 cases for $20 each. There were no beginning inventories. Variable manufacturing costs were
Whitlock Company produced 10,000 cases of cookies this year. It sold 9,000 cases for $20 each. There were no beginning inventories. Variable manufacturing costs were $60,000, and fixed manufacturing expenses were $100,000. Selling and administrative expenses were $20,000, all fixed.
Required:
a. Prepare income statements using the variable costing and absorption costing.
b. Reconcile the net income under absorption and variable costing.
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