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Beginning inventory, January 1, 2020 Ending inventory, December 31, 2020 2020 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 80,000 units 37,000 units 350,000 units $24.50 per unit $5.80 per unit $1.00 per unit sold $1,395,000 6,200 50 units per machine-hour $1,030,000 The Kocka Company manutactures trendy, high-quality, moderately priced watches. As Klocka's senior fnancial analyst, you are asked to recommend a method of inventory costing. The ch financial officer (CFO) will use your recommendation to prepare Kocka's 2020 income statement. The following data are for the year ended December 31 , 2020 : (Click the icon to viow the data.) C (Click the icon to vew the assumptions.) Resd the reguirements. Requirement 1. Prepare income statements under variable and absorption costing for the year ended December 31, 2020 Begin by proparing the income statement under variable costing for the year ended December 31, 2020. Complete the toe hal of the income statement firat, then complete the bottom portion

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