Do not give answer in image Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the followinginformation. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overheadrate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negativenumbers.)Standard: 5 yards per unit at $6.30 per yardStandard: 2.50 hours per unit at $15.00Standard: variable overhead $1.05 per unitStandard: fixed overhead $211,500 (budgeted and actual amount)Baxter CompanyIncome Statement Through Gross ProfitFor the Year Ended December 31SalesCost of goods sold-at standardGross profit-at standardLess variance adjustments to gross profit-at standard:Direct materials priceDirect materials quantityDirect labor rateActual yards used: 45,760 yards at $6.25 per yardActual hours worked: 22,250 at $14.90 per hourActual total factory overhead: $238,000EUnfavorable Favorable Baxter CompanyIncome Statement Through Gross ProfitFor the Year Ended December 31SalesCost of goods sold-at standardGross profit-at standardLess variance adjustments to gross profit-at standard:Direct materials priceDirect materials quantityDirect labor rateDirect labor timeFactory overhead controllableFactory overhead volumeNet variance from standard cost-unfavorableGross profitUnfavorable Favorable830

Calculations of sales : Sales = 9,000 units * $130 = $1,170,000 Calculation of cost of good sold -…

Prepare an income statement for the year ended December 31 through the gross profit for Baxter Company using the following information. Baxter Company sold 9,000 units at $130 per unit. Normal production is 9,400 units. (Do not round the fixed overhead rate computation when determining the fixed factory overhead volume variance. Enter favorable variances as negative numbers.)