Reference no: EM132795124

Neufeld IncAt the end of the year, the following actual results reported:

1. manufactures opera glasses. The company uses actual costing systems. The opera glasses sell for $290 each. For 2019, the company budgeted fixed manufacturing overhead of $160,000 and fixed selling and administrative costs of $25,000. Budgeted production was 5,000 units.
2. Opening inventory was 500 units, with assigned cost of $45,000.
3. Sales were 5,500 units and production was 6,000 units.
4. Total variable manufacturing costs (direct labour and direct materials) was $455,000.
5. ·Fixed manufacturing overhead was $160,000, as budgeted.
6. Variable selling and administrative costs were $19.95 per unit.
7. Actual fixed selling and administrative costs were $280,000.

Required:

Problem A) Prepare Income Statement for Neufeld Inc. for the 2019 fiscal year using Absorption Costing.

Problem B) Prepare Income Statement for Neufeld Inc. for the 2019 fiscal year using Variable Costing.