3.(TCO E) Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year is presented below:Units in beginning inventory0Units produced9000Units sold7000Sales$100000Less cost of goods sold:Beginning inventory0Add cost of goods manufactured54000Goods available for sale54000Less ending inventory12000Cost of goods sold42000Gross margin58000Less selling and admin. expenses28000Net operating income$30000Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold.Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.(Points : 30)

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