Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations:

Prior Year Current Year

Sales 1,900units 2,500units

Production 2,200units 2,200units

Production cost

Factory variable (per unit) $0.60 $0.60

fixed $1,100 $1,100

Marketingvariable $0.40 $0.40

Administrativefixed $500 $500

Required:

1. Put together an income statement for each year based on full costing.

2. Put together an income statement for each year based on variable costing.

3. Put together a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.