From the following information prepare an income statement using
1) absorption costing
and
2) variable costing
There are NO beginning inventories of any kind and no Materials or WIP ending inventories
| ales |
|
12,000 units |
Sales Price $20 |
|
|
|
| Production |
14,000 units |
|
|
|
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| Direct materials |
$ 3 per unit |
|
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| Direct labor |
$5 per unit |
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| Variable Overhead |
$2 per unit |
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|
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| Fixed Overhead |
$35,000 per month |
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| Variable commission |
5% of sales |
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| Fixed G & A |
$8,000 |
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| Fixed Selling |
$10,000 |
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