Chapter 21, Problem 2PA

1.

To determine

Prepare an estimated income statement according to the absorption costing concept for the Incorporation LI for the month of October.

2.

To determine

Prepare an estimated income statement according to the variable costing concept for the Incorporation LI for the month of October.

3.

To determine

Identify the amount of temporary loss would be incurred by Incorporation LI, if the production were temporarily suspended for October.

4.

To determine

Advice for the management.