Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all- season...

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Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all- season use. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1, 2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $3,300 for all three years: Year 1 Year 2 Year 3 Inventories: Beginning (units) Ending (units) 190 240 240 190 190 280 Variable costing operating $293,200 $270,000 income $252,600 Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report. Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all- season use. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1, 2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $3,300 for all three years: Year 1 Year 2 Year 3 Inventories: Beginning (units) Ending (units) 190 240 240 190 190 280 Variable costing operating $293,200 $270,000 income $252,600 Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report.

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Sunrise Pools and Spas Absorption Costing Operating Income Reconciliation Year 1 Item Variable Costing Absorption Costing Difference Variable Costing ... View the full answer