Exercise - Winters Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances.
Materials price variance $1,250U Labor quantity variance $725U
Materials quantity variance 700F Overhead variance 800
Labor price variance 525
In addition, 8,000 units of product were sold at $8.00 per unit. Each unit sold had a standard cost of $6.00. Selling and administrative expenses were $6,000 for the month.
Instructions - Prepare an income statement for management for the month ended January 31, 2011.