need help with management accounting questions?

Project Description:

i have management accounting exams in two weeks and i need help with quizzes that i have been practicing. right now i am stuck with this question, thanks:

the east coast company has built a massive water-desalting factory next to atlantic ocean. the factory is completely automated. it has its own source of power, light, heat and so on. the salt water costs not nothing . its has both variable and fixed manufacturing costs its variable cost are $0.14 per litre and its fixed manufacturing costs are $385,000 per year. the desalted water is not sold to household consumers. it has a special taste that appeals to local breweries, distilleries and soft-drink manufacturers. the price,$0.60 per litre, is expected to remain unchanged for quite sometime.
the following are data regarding the first two years of operations:

in liters total costs
sales production manufacturing other
2010 1,750,000 3,500,000 $ 385,000 $195,000
2011 1,750,000 0 $ 385,000 $195,000

sales(1,750,000 for both years) & production3,500,00 in 2010 and 0 in 2011) are in litres and manufacturing($ 385,000 for both years) and other ($195,000)are in cost


1. prepare three-column income statements for 2010, for 2011 and for the two years together using (a) variable costing and (b) absorption costing- begin by preparing the three column income statement with option 1, if normal capacity was the production units in 2010; then prepare the three-column income statement with option 2, if normal capacity was the units sold ( if there is not a cost, leave the cell blank. use parentheses or a minus sign for overapplied overhead amounts and nets losses. round all interim calculations to the nearest cent. rounding you final answers to the nearest whole dollar.)

1(b)
option 1 option 2
2010 2011 total 2010 2011 total

sales
less cost of goods sold:
beginning inventory
cost of goods manufactured
cost of goods available for sale
ending inventory
cost of goods sold-at normal cost
underappled overhead-
overappled overhead-
other expenses
total charges
net income(loss)

2. what inventory costs would be carried on the balance sheet at december 31, 2010 and december 31, 2011, under each method?
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