Reference no: EM132541783

BADM2010 Inc., which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $50

Units in beginning inventory 500

Units produced 3,900

Units sold 5,100

Variable costs per unit:

Direct materials $20

Direct labour 10

Variable manufacturing overhead 7

Variable selling and administrative 10

Fixed costs:

Fixed manufacturing overhead $38,000

Fixed selling and administrative 21,000

• The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required:

Question a) Make a income statement for the month using the variable costing method.

Question b) Make a income statement for the month using the absorption costing method.