Prepare an income statement using absorption costing

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Reference no: EM131258313

From the following prepare an income statement using absorption costing and then variable costing.

There are no WIP inventories and also no finished goods beginning inventory.

Sales 10,000 at $120

Direct Materials 10,500 at $28

Direct Labor 10,500 at $32

Variable Overhead 10,500 at $20

Commission 5% of units sold

Fixed Overhead = $80,000

Fixed Selling = $40,000

Fixed Administrative = $45,000

Reference no: EM131258313

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