XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation: Beginning inventory 0 units Units produced 40,000 units Units sold 35,000 units Selling price $120 per unit Marketing and administrative expenses Variable marketing and administrative expenses per unit
XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation:
|
Beginning inventory |
0 units |
|
Units produced |
40,000 units |
|
Units sold |
35,000 units |
|
Selling price |
$120 per unit |
|
Marketing and administrative expenses |
|
|
Variable marketing and administrative expenses per unit |
$4 |
|
Fixed marketing and administrative expenses per month |
$1,120,000 |
|
|
|
|
Direct materials cost per unit |
$30 |
|
Direct labor cost per unit |
$14 |
|
Variable manufacturing |
$4 |
|
Fixed manufacturing overhead cost per month |
$1,280,000 |
Using the information given, above:
Prepare an Income Statement under the variable costing method, as well as the absorption costing method
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