Reference no: EM132669277

Lion Inc. produces a single product. Data concerning the company's operations last year appear below:

Units in beginning inventory 0

Units produced 250 Units sold 225

Selling price per unit $850

Variable costs per unit:

Direct materials $100

Direct labor $320

Variable manufacturing overhead $40

Variable selling and administrative $20

Fixed costs in total:

Fixed manufacturing overhead $60,000

Fixed selling and administrative $20,000

Required:

Problem 1. an income statement for the year using absorption costing.

Problem 2. income statement for the year using variable costing.

Problem 3. Reconcile the variable costing and absorption costing net operating incomes.