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The following data pertain to April operations for Josephson Company: Beginning inventory    3,000      Units...

The following data pertain to April operations for Josephson Company:

Beginning inventory    3,000     
Units sold     9,000     
Units produced     8,000     
Sales price per unit     $ 30     
Direct manufacturing cost per unit     $ 10     
Fixed factory overhead-total    $40,000     
Fixed factory overhead-per unit    $ 5     
Commercial expense (all fixed)    $44,000     

Required:
a. Prepare an income statement using absorption costing.
b. Prepare an income statement using marginal costing.
c. Provide computations as well as explain the difference in operating income between the two methods.


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