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Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below.
(a.) Prepare Stonehenge's December 31st income statement for the current year under absorption costing.
(b.) Prepare Stonehenge's December 31st income statement for the current year under variable costing.
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