BC is a division of California controls Corporation. The division manufactures and sells a pump that is used in a wide variety of applications. The division manager is considering producing either 30,000 or 60,000 units this period. Other information is presented in the schedule below
Division Information
Beginning inventory 0
Expected sales in units 30,000
Selling price per unit $27
Variable manufacturing cost per unit $10
Variable selling and administrative cost per unit $6
Total fixed manufacturing overhead costs $300,000
Fixed manufacturing overhead costs per unit
Based on 30,000 units ($300,000 / 30,000) $10
Based on 60,000 units ($300,000 / 60,000) $5
Manufacturing cost per unit
Based on 30,000 units ($10 variable + $10 fixed) $20
Based on 60,000 units ($10 variable + $5 fixed) $15
Fixed selling and administrative expenses $13,000
A. prepare an absorption costing income statement for 30,000 units produced and 30,000 units sold.
B. Prepare a variable costing income statement for 30,000 units produced and 30,000 units sold.
C. Prepare an absorption costing income statement for 60,000 units produced and 30,000 units sold.
D. Prepare a variable costing income statement for 60,000 units produced and 30,000 units sold.