Pennsylvania Manufacturing Company Absorption (Full) vs. Variable Costing PROBLEM Information For the Year Ended December 31, 2020 Required: Using the data provided, prepare typed income statements under absorption costing and variable costing on the form provided at the first tab in this workbook. See the "Notes" below the data regarding income statement format and required detail. Pennsylvania Manufacturing Company manufactures horse hair brushes that sell for $3.00 each. Production, sales, and cost data for 2030 are provided below. Production Information: Finished Goods, January 1, 2020 Units produced Units sold Cost Information: 0 3,000 2,500 Direct materials per unit Direct labor per unit Variable factory overhead per unit Total variable factory cost per unit Fixed factory overhead Variable marketing per unit sold Fixed selling and administrative costs NOTES: For Grading and Clear Written Communication: $ - 0.20 0.09 0.15 0.44 2,100.00 0.80 700.00 1. Include a complete Cost of Goods Sold section inside each income statement: Beginning finished goods, etc. 2. Detail the cost in each income statement. For example, show the marketing expense separate from the selling and administrative expense inside the income statement. 3. Use a single underline to signal each math operation 4. Use a double underline on final totals For absorption costing, use the traditional (generally accepted accounting principles or GAAP) income statement format. Sales - Cost of goods sold = Gross margin Gross margin - Operating expenses = Operating income For variable costing, use the contribution margin income statement format. Sales - Variable costs = Contribution margin Contribution margin - Fixed costs = Operating Income