1. The following data are available for the Lawrence Manufacturing Company for the year 2017, and...

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1. The following data are available for the Lawrence Manufacturing Company for the year 2017, and 2018, its first and second years of operations: 2017 2018 Beginning inventory in units 0? Units Produced 2,400 1800 Units Sold 2,000 2000 Sales $200,000 $200,000 Materials cost $24,000 $18,000 Variable conversion cost used $48,000 $36,000 Fixed manufacturing cost $36,000 $36,000 Fixed operating expenses. $40,000 $40,000 Required: (a) Calculate ending inventory under throughput/variable costing and absorption costing for 2017 and 2018. (b) Calculate operating income for 2018 under throughput/variable costing and absorption costing. (c) Explain and differences in income between Absorption and Variable/Throughput incomes. Make sure that your explanation includes a mathematical reconciliation of incomes. 1. The following data are available for the Lawrence Manufacturing Company for the year 2017, and 2018, its first and second years of operations: 2017 2018 Beginning inventory in units 0? Units Produced 2,400 1800 Units Sold 2,000 2000 Sales $200,000 $200,000 Materials cost $24,000 $18,000 Variable conversion cost used $48,000 $36,000 Fixed manufacturing cost $36,000 $36,000 Fixed operating expenses. $40,000 $40,000 Required: (a) Calculate ending inventory under throughput/variable costing and absorption costing for 2017 and 2018. (b) Calculate operating income for 2018 under throughput/variable costing and absorption costing. (c) Explain and differences in income between Absorption and Variable/Throughput incomes. Make sure that your explanation includes a mathematical reconciliation of incomes.

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a To calculate the ending inventory under throughputvariable costing and absorption costing for 2017 and 2018 we need to consider how the costs are allocated Under throughputvariable costing only vari... View the full answer