Show all work and label all numbers. Etters Manufacturing Company has provided the following financial data for its most recent month.   Selling Price $18 Units produced 10,000 Units sold 9,500 Variable costs per unit:      Direct materials $6    Direct labor $4    Manufacturing overhead $3    Selling and administrative costs $1 Fixed costs:      Manufacturing overhead $12,000    Selling and administrative costs $8,000 Questions: a)Prepare an operating income statement using variable costing.     b)Prepare an operating income statement using absorption costing.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Show all work and label all numbers. Etters Manufacturing Company has provided the following financial data for its most recent month.

 

Selling Price

$18

Units produced

10,000

Units sold

9,500

Variable costs per unit:

 

   Direct materials

$6

   Direct labor

$4

   Manufacturing overhead

$3

   Selling and administrative costs

$1

Fixed costs:

 

   Manufacturing overhead

$12,000

   Selling and administrative costs

$8,000

Questions:

a)Prepare an operating income statement using variable costing.

 

 

b)Prepare an operating income statement using absorption costing.



 

 

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