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Degrees, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this time, the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit. Cost information for this period is shown below.
Production costs:
Direct Materials: 13.00 per unit Direct Labor: 6.00 per unit Variable Overhead: 2,100,000 in total Fixed Overhead: 3,220,000 in total Non-production costs Variable Selling & Administrative: 91,000 in total Fixed selling & Administrative: 458,000 in total
a.) Prepare 32 degree's December 31st income statement for current year under variable costing.
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