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Yashar, Inc., planned and actually manufactured 400.000 units of its single product in 2015, its first year of operation. Variable manufacturing cost was 40 USD per unit produced. Variable operating (nonmanufacturing) cost was 20 USD per unit sold. Planned and actual fixed manufacturing costs were 1.200.000 USD. Planned and actual fixed operating (nonmanufacturing) costs totaled 800.000 USD. Yashar sold 240.000 units of product at 80 USD per unit
a) Prepare Yashar's 2015 income statement using absorption costing. Show supporting calculations.
b) Prepare Yashar's 2015 income statement using variable costing. Show supporting calculations
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