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Question - Wifi Apps has these costs associated with its production and sale of devices that allow visual communications between cell phones:
Beginning inventory $0
Units produced 33,000
Units sold 23,000
Selling price per unit $170
Variable sales and administration expenses $4
Fixed sales and administration expenses $895,000
Direct material cost per unit $23
Direct labor cost per unit $15
Variable manufacturing overhead $4
Cost per unit
Fixed manufacturing overhead $858,000
Cost per month
Required - Prepare an income statement under bath the absorption and variable costing methods along with a reconciliation between the two statements.
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