Chapter 9 Inventory Costing and Capacity Question 3, E9-25 (book/static) Part 1 of 7 HW Score: 0%, 0 of 12 points Points: 0 of 2 The Tomlinson Company manufactures trendy, high-quality, moderately priced watches. As Tomlinson's senior financial analyst, you are asked to recommend a method of inventory costing. The chief financial officer (CFO) will use your recommendation to prepare Tomlinson's 2020 income statement. The following data are for the year ended December 31, 2020: (Click the icon to view the data.) (Click the icon to view the assumptions.) Read the requirements. Requirement 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2020. Begin by preparing the income statement under variable costing for the year ended December 31, 2020. Complete the top half of the income statement first, then complete the bottom portion. Variable costing Sa Data table - Beginning inventory, January 1, 2020 Ending inventory, December 31, 2020 2020 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 90,000 units 34,000 units 433,000 units $24.00 per unit $5.40 per unit $1.20 per unit sold $1,852,200 6,300 60 units per machine-hour $1,130,000 Print Done