Reference no: EM132741666

During its second month of operations, Texas Corporation produced 300 units and sold 280 units at $40 each. The beginning inventory comprised 50 units, and costs were unchanged from the previous month. Texas uses a LIFO cost flow assumption to account for inventory.

Costs incurred during the second month were:

Direct materials per unit produced $3
Direct labor per unit produced $5
Variable overhead per unit produced $7
Variable selling and administrative cost per unit sold $5
Total fixed production overhead $6,000
Total fixed selling and administrative costs $3,000

Problem 1. income statement using the absorption costing method.
Problem 2. income statement using the variable costing method.
Problem 3. income statement using the throughput costing method.
Problem 4. Reconcile/explain the income between absorption costing and variable costing.
Problem 5. Reconcile/explain the income between variable costing and throughput costing.