VV revenues un 0 Data Table beginning production the two meti CFO? Why ble and all costing fo Kom portion Beginning inventory, January 1, 2017 Ending inventory, December 31, 2017 2017 sales Selling price (to distributor) Varibble 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 82,000 units 32,000 units 300,000 units $20.00 per unit $5.10 per unit $1.80 per unit sold $1,352,000 6,500 40 units per machine-hour $1,050,000 nalyst, locka's Requirements 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2017 2. What is Klocka's operating income as percentage of revenues under each costing method? 3. Explain the difference in operating income between the two methods. 4. Which costing method would you recommend to the CFO? Why? Also, sold in The Klocka Company manufactures trendy, high-quality moderately priced watches. As Klocka's senior financial analyst, Requirements you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare Klocka's 1. Prepare income st. 2017 income statement. The following data are for the year ended December 31, 2017: 2. What is Klocka's op Click the icon to view the data.) 3. Explain the differer Assume standard costs per unit are the same for units in beginning inventory and units produced during the year. Also, 4. Which costing met assume no price, spending, or efficiency variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Requirement 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2017 Begin by preparing the income statement under variable costing for the year ended December 31, 2017. Complete the top half of the income state Variable costing Absorption costing Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. What is Klocka's operating income as percentage of revenues under each costing method? (Round the percentages to the nearest terthp Operating Income % % as % of revenues Variable costing Absorption costing Requirement 3. Explain the difference in operating income between the two methods. Operating income using variable costing is than operating income using absorption costing. The main difference between variable costing and absc Requirement 4. Which costing method would you recommend to the CFO? Why? The costing method should be recommended as it considers Choose from any list or enter any number in the input fields and then continue to the next