Momentum Bikes manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory):
Variable production costs $90 per bike
Fixed production costs $450,000
Variable selling & administrative costs $22 per bike
Fixed selling & administrative costs $500,000
Selling price $200 per bike
Production 20,000 bikes
Sales 17,000 bikes
Instructions
Prepare a brief income statement using variable costing.