The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first year of operations. Units produced 20,000 Units sold 17,000 Selling price per unit $35 Direct material per unit $5 Direct labor per unit $5 Variable manufacturing overhead per unit $2 Variable selling cost per unit $3 Annual fixed manufacturing overhead $160,000 Annual fixed selling and administrative expense $80,000 Required (a) Prepare an income statement using full costing. (b) Prepare an income statement using variable costing.
Variable Costing and Segment Reporting
The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first year of operations.
Units produced 20,000
Units sold 17,000
Selling price per unit $35
Direct material per unit $5
Direct labor per unit $5
Variable manufacturing
Variable selling cost per unit $3
Annual fixed manufacturing overhead $160,000
Annual fixed selling and administrative expense $80,000
Required
(a) Prepare an income statement using full costing.
(b) Prepare an income statement using variable costing.
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