Essay
The Tijama Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on normal production of 50,000 units per year: 
Operating statistics for the month of August and September include: 
The selling price is $70 per unit. There were no inventories on August 1, and there is no work in process at September 30.
Prepare comparative income statements for each month under the following methods:
a.Absorption costing method
b.Direct costing method
Correct Answer:
Verified
Correct Answer:
Verified
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