Reference no: EM132714752

Question - 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 -

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

2. Make an income statement for the year using variable costing. iii. Reconcile the variable costing and absorption costing net operating incomes.