Yale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company...

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Accounting

Yale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company had no beginning inventory in theprior year. These data summarize the current and prior yearoperations:
Prior Year Current Year
Sales 3,500 units 7,300 units
Production 5,400 units 5,400 units
Production cost
Factory—variable (per unit) $ 0.60 $ 0.60
—fixed $ 2,700 $ 2,700
Marketing—variable $ 0.40 $ 0.40
Administrative—fixed $ 500 $ 500
Required: 1. Prepare an income statement for each year based onfull costing. 2. Prepare an income statement for each year based onvariable costing. 3. Prepare a reconciliation of the differenceeach year in the operating income resulting from using the fullcosting method and variable costing method.
PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!

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In: AccountingYale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company had...Yale Company manufactures hair brushes that sell at wholesalefor $3 per unit. The company had no beginning inventory in theprior year. These data summarize the current and prior yearoperations:Prior YearCurrent YearSales3,500units7,300unitsProduction5,400units5,400unitsProduction costFactory—variable (per unit)$0.60$0.60—fixed$2,700$2,700Marketing—variable$0.40$0.40Administrative—fixed$500$500Required: 1. Prepare an income statement for each year based onfull costing. 2. Prepare an income statement for each year based onvariable costing. 3. Prepare a reconciliation of the differenceeach year in the operating income resulting from using the fullcosting method and variable costing method.PLEASE ANSWER WITH EXPLANATIONS ASAP, THANK YOU!

	Prior Year			Current Year
Sales		3,500	units		7,300	units
Production		5,400	units		5,400	units
Production cost
Factory—variable (per unit)	$	0.60		$	0.60
—fixed	$	2,700		$	2,700
Marketing—variable	$	0.40		$	0.40
Administrative—fixed	$	500		$	500