Jensen Company Produced 10,000 Cases of Cookies This Year

Essay

Jensen Company produced 10,000 cases of cookies this year. It sold 9,500 cases for £10 each. There were no beginning inventories. Variable manufacturing costs were £30,000, and fixed manufacturing expenses were £50,000. Selling and administrative expenses were £10,000, all fixed.
a.Prepare income statements using the variable costing and absorption costing.
b.Reconcile the net income under absorption and variable costing.