The Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the company for 2015 and 2016:

There was no beginning inventory on January 1, 2015. The company used the FIFO method to calculate the cost of inventories. Ignore in- come taxes.
Instructions
(a) Prepare income statements for 2015 and 2016 using the absorption- costing method.
(b) Prepare income statements for 2015 and 2016 using the variable- costing method.
(c) Reconcile the absorption-costing and variable-costing net income figures for 2015 and 2016.
(d) Prepare income statements for 2015 and 2016 using the throughput- costing method.
(e) Reconcile the throughput-costing and variable-costing net income figures for 2015 and 2016.

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2015 2016 Units produced Units sold Selling price per unit Variable costs per unit 60,000 54,000 $250 50,000 54,000 $250 Direct materials Direct labour Variable overhead Selling expenses $80 40 35 30 $2,500,000 $ 300,000 $80 40 35 30 $2,500,000 $ 300,000 Fixed manufacturing overhead (total) Fixed selling and administrative expenses (total)