Ireland Corporation Planned to Be in Operation for Three Years

question 70

Essay

Ireland Corporation planned to be in operation for three years.
• During the first year,2015,it had no sales but incurred $240,000 in variable manufacturing expenses and $80,000 in fixed manufacturing expenses.
• In 2016,it sold half of the finished goods inventory from 20x1 for $200,000 but it had no manufacturing costs.
• In 2017,it sold the remainder of the inventory for $240,000,had no manufacturing expenses and went out of business.
• Marketing and administrative expenses were fixed and totaled $40,000 each year.
Required:
a.Prepare an income statement for each year using absorption costing.
b.Prepare an income statement for each year using variable costing.

---

Definitions:

Workforce Diversity

The inclusion of individuals from various backgrounds and demographics in an organization, enhancing creativity, perspective, and innovation by embracing different experiences and ideas.

Affirmative Action

Represents a set of steps taken by an organization to actively seek qualified applicants from groups underrepresented in the workforce.

Conflict

A situation where individuals or groups have opposing interests, beliefs, or needs.

Productivity

Is an economic measure of efficiency that summarizes and reflects the value of the outputs created by an individual, organization, industry, or economic system relative to the value of the inputs used to create them.