(Solved): EXERCISE 2: Unit Cost Computations and income statement Dexter Corporation produces and sells a sin ...

EXERCISE 2: Unit Cost Computations and income statement Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two vears are given below: Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost in each year. b. Prepare an income statement for each year. 2. Assume the company uses variable costing: a. Compute the unit product cost in each year. b. Prepare an income statement for each year. 3. Reconcile the variable costing and absorption costing net operating incomes.