### Variable and absorption costing

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##### Reference no: EM1365005

XYZ Company sells its razors at \$8.00 per unit. The following data relates to its first year of operations.

Sales 500 units
Production 1,000 units

Costs

Variable manufacturing \$ 400

Fixed manufacturing 800

Variable selling 400

Fixed selling 200

a) Prepare an income statement based on variable costing.

b) Prepare an income statement based on absorption costing.

c) Provide all computations for each, example: Sales= Total Units Sold (500) x Price (8.00)

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