The Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the
Question:
There was no beginning inventory on January 1, 2011. The company used the FIFO method to calculate the cost of inventories. Ignore income taxes.
Instructions
(a) Prepare income statements for 2011 and 2012 using the absorption-costing method.
(b) Prepare income statements for 2011 and 2012 using the variable-costing method.
(c) Reconcile the absorption-costing and variable-costing net income figures for 2011 and 2012.
(d) Prepare income statements for 2011 and 2012 using the throughput costing method.
(e) Reconcile the throughput-costing and variable-costing net income figures for 2011 and 2012.
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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