How do make the company income statement for the year

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Jade Company manufactures and sells premium tomato juice by the gallon. The company just finished its first year of operations. The following data relates to this first year:

Number of gallons produced 75,000

Number of gallons sold 70,000

Sales price $3.00 per gallon

Unit product cost under variable costing $1.45 per gallon

Total contribution margin $84,000

Total fixed manufacturing overhead cost $63,000

Total fixed selling and administrative expense $10,500

Required:

Question a. Using the absorption costing method, prepare the company's income statement for the year.

Question b. Using variable costing method, prepare the company's income statement for the year.

Question c. For decision making purpose, which is the better method? Why?

Reference no: EM132624984

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