Problem:
Posey Manufacturing has the following cost information available for the most current year. Direct Material $6.00 per unit Direct Labor 4.00 per unit Variable man overhead 2.00 per unit Variable S&A costs 1.00 per unit Fix man overhead 80,000 Fixed S&A costs 25,000 During the year, Posey produced 12,500 units, out of which 11,000 were sold for $60 each.
Required:
Question: Produce an income statement using absorption costing
Note: Please provide through step by step calculations.