Problem
Roberts, which began business at the start of the current year, had the following data:
Planned and actual production: 40,000 units
Sales: 37,000 units at $15 per unit
Production costs:
Variable: $4 per unit Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000.
Prepare an absorption costing income statement.