Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company...
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Accounting
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations:
Prior Year
Current Year
Sales
3,500
units
7,300
units
Production
5,400
units
5,400
units
Production cost
Factoryvariable (per unit)
$
0.60
$
0.60
fixed
$
2,700
$
2,700
Marketingvariable
$
0.40
$
0.40
Administrativefixed
$
500
$
500
Required: 1. Prepare an income statement for each year based on full costing. 2. Prepare an income statement for each year based on variable costing. 3. Prepare a reconciliation of the difference each year in the operating income resulting from using the full costing method and variable costing method.
PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!
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