Question: During the first month of operations ended May 31 2014

During the first month of operations ended May 31, 2014, Ice Cold Fridge Company manufactured 17,500 dormitory refrigerators, of which 16,380 were sold. Operating data for the month are summarized as follows:


Instructions
1. Prepare an income statement based on the absorption costing concept.
2. Prepare an income statement based on the variable costing concept.
3. Explain the reason for the difference in the amount of income from operations reported in (1) and(2).


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  • CreatedJune 27, 2014
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