Alternative Inventory Costing Methods: A Decision-Making Perspective t cost, prepare ader variable P8.40B (LO 1, 2, 3, 5) Allerdyce Corporation Ltd. (ACL) prepares external financial statements using absorption costing and internal financial statements using variable costing. You have the following infor- mation for the operations of ACL for the past two years: n costing, and es when sales change. 191 9moo nitaoo wd 2019 2020 Sales in units (@ $35 per unit) ho 25,000 1 ,000 Production in units 30,000 $ 30,000 Variable production costs per unit 20 20 $ Fixed production costs Fixed marketing costs 120,000 120,000 tu 50,000 50,000 dbid boBeginning inventory aboog lo taoo 01 9os Instructions overead inu 79 a. Prepare absorption-costing income statements for the years ended December 31, 2019 and 2020. Include a column for totals for the two years. b. Prepare variable-costing income statements for the years ended December 31, 2019 and 2020. In- clude a column for totals for the two years i tst c. Reconcile the year-to-year differences in net income under the absorption-costing and variable- costing methods. P8.41B (LO 1,2, 3) The vice-president of Abscorp Ltd. is not happy. Sales have been rising steadily, but profits have been falling. In September 2020, Abscorp had record sales but the lowest nrofitn muu Th repare able