AP5-17 Variable and Full Costing Income: Comprehensive Problem [LO 1,2,3] The following information relates to Jorgensen Manufacturing Products for calendar year 2011, the company's first year of operation: Units produced 8,060 Units sold 7,280 Selling price per unit $4,760 Direct material per unit $2,010 Direct labor per unit $1,250 Variable manufacturing overhead per unit $940 Variable selling cost per unit $232 Annual fixed manufacturing overhead $814,060 Annual fixed selling and administrative expense $401,200 Prepare an income statement using full costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.) Jorgensen Manufacturing Income Statement For the Year End December 31, 2011 Cost of goods soldFixed selling and administrative expensesVariable selling expenseSales $ Less SalesVariable selling expenseFixed selling and administrative expensesCost of goods sold Gross margin Less: Cost of goods soldFixed selling and administrative expensesVariable selling expenseSales Cost of goods soldFixed selling and administrative expensesSalesVariable selling expense Net income $ _________________ Prepare an income statement using variable costing. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. Enter all amounts as positive amounts and subtract where necessary.) Jorgensen Manufacturing Income Statement For the Year End December 31, 2011 Selling costsSalesVariable expensesProduction costsFixed expensesManufacturing overheadSelling and administrative $ Less: SalesManufacturing overheadSelling and administrativeProduction costsVariable expensesSelling costsFixed expenses Fixed expensesSelling and administrativeSalesVariable expensesSelling costsManufacturing overheadProduction costs SalesVariable expensesManufacturing overheadProduction costsFixed expensesSelling costsSelling and administrative Contribution margin Less: Selling costsSalesVariable expensesManufacturing overheadProduction costsSelling and administrativeFixed expenses Variable expensesSelling costsFixed expensesSelling and administrativeManufacturing overheadProduction costsSales Variable expensesProduction costsSelling and administrativeSelling costsSalesFixed expensesManufacturing overhead Net income $ __________________ Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing. $ __________________ What is the difference between income computed under variable costing and income computed under full costing? $ ___________________ Suppose that the company sold 8,060 units during the year. What would the variable costing net income have been? $ ______________________ What would the full costing net income have been? $ ________________________