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  1. business
  2. accounting
  3. reconcile the difference in profit in both methods

reconcile the difference in profit in both methods. 1....

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Accounting

reconcile the difference in profit in both methods.

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1. Piscopo Company produces mint chocolate candies. The chocolates sell for $12 per box During its first year of operations, the company produced 10,000 boxes of chocolates and sold 9,000 boxes of the candies. The company's cost information includes the following: Direct materials Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses Variable manufacturing overhead Variable selling and administrative expenses $ 2.00 per unit $ 3.00 per unit $20,000 $ 5,000 $1.00 pr unit $ 3.00 per unit Part (a) Compute the unit product cost under absorption costing. Part (b) Compute the unit product cost under variable costing. Part (c) Prepare an income statement using absorption costing. Part (d) Prepare an income statement using variable costing. Part (e) Explain the difference of $2,000 in the net operating income determined under the absorption and variable costing methods

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