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Question - The manufacturing and selling data for Abracadabra Inc. for the year 2018 is given below: -
Selling price $35 /unit
Finished goods (beginning) 10200 units
Production 90680 units
Sales 84300 units
Variable costs:
Manufacturing $9 /unit
Selling and administrative $2 /unit
Fixed costs:
Manufacturing $320000 /year
Selling and administrative $297000 /year
Assuming costs per unit were consistent over the years in both the costing methods, prepare
(a) Prepare income statement using absorption costing.
(b) Prepare income statement using variable costing.
(c) Prepare reconciliation of net operating incomes.
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