Answer and explanations

WileyPLUS Problem 8.2 a-b Toy Centre Inc. sells Frisbees. In 2020, the company produced 3,000,000 units but sold only 2,500,000 units. The unit selling price was $1.50 per Frisbee. The company had no beginning inventory. Costs and expenses for the year ended December 31, 2020 were as follows: Variable costs per unit: Direct materials $0.45 Direct labour 0.08 Variable manufacturing overhead 0.17 Variable selling and administrative expenses 0.22 Annual fixed costs and expenses: Manufacturing overhead $360,000 Selling and administrative expenses 330,000Prepare an income statement using absorption costing. Toy Centre Inc. Income Statement Absorption Costing 4FPrepare an income statement using variable costing. Toy Centre Inc. Income Statement Variable Costing : $ 0 u u u u 0