Mad Men Corporation only produce one product has provided the following data concerning 2015 and 2016 year. The company's variable cost per unit and fixed selling and administrative cost has been constant from 2015 to 2016.
2016 information:
Units beginning inventory consisted of 200 units (2015 produced 9,000 units, sold 8,800 units and fixed Manuf. OH = $72,000)
Units produced - 8,000
Units sold - 7,900
Units in ending inventory - 300
Variable costs per unit:
Direct materials - $42
Direct labor - $32
Variable manufacturing overhead - $6
Variable selling and administrative - $4
Fixed costs:
Fixed manufacturing overhead - $80,000
Fixed selling and administrative - $39,000
Prepare a variable costing income statement.
Prepare an absorption costing income statement.