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Hayek bikes prepares the income statement under variable

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Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 375 bikes were produced and 225 were sold; this left 150 bikes in ending inventory. The income statement information under variable costing follows.

Sales (225 × $1,675)

$376875

Variable production cost (225 × $600)

$135000

Variable selling and administrative expenses (225 × $50)

$11250

Contribution margin

$230625

Fixed overhead cost

$60000

Fixed selling and administrative expense

$80000

Net income

$90625

Prepare this company's income statement for its first month of operations under absorption costing.(Round your intermediate calculations to the nearest whole dollar.) 

Reference no: EM13984868

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