Reference no: EM13606821

Variable and Full Costing Income: Comprehensive Problem [LO 1,2,3] The following information relates to Jorgensen Manufacturing Products for calendar year 2011, the company's first year of operation: Units produced 8,140 Units sold 7,140 Selling price per unit $4,810 Direct material per unit $2,020 Direct labor per unit $1,250 Variable manufacturing overhead per unit $950 Variable selling cost per unit $234 Annual fixed manufacturing overhead $879,120 Annual fixed selling and administrative expense $406,000 Prepare an income statement using full costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.) Jorgensen Manufacturing Income Statement For the Year End December 31, 2011 $ Less Gross margin Less: Net income $ Prepare an income statement using variable costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.) Jorgensen Manufacturing Income Statement For the Year End December 31, 2011 $ Less: Contribution margin Less: Net income $ Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing. $ What is the difference between income computed under variable costing and income computed under full costing? $ Suppose that the company sold 8,140 units during the year. What would the variable costing net income have been? $ What would the full costing net income have been? $ Click here if you would like to Show Work for this question