Create an income statement for year using absorption costing

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Reference no: EM13123508

Data concerning Apple Company's operations last year appear below:

Units in beginning inventory 0
Units produced 12,000
Units sold 11,250

Selling price per unit $90

Variable costs per unit:
Direct materials $20
Direct Labor 10
Variable manufacturing overhead 8
Variable selling and administrative 5

Fixed costs in total:
Fixed manufacturing overhead $180,000
Fixed selling and administrative $150,000

a) compute the unit product cost under both absorption and variable costing

b) prepare an income statement for the year using absorption costing

c) prepare an income statement for the year using variable costing

d) prepare a report reconciling the difference in net operating income between absorption and variable costing for the year

Reference no: EM13123508

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