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Problem
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
Variable Costs per Unit Direct materials $7.88Direct labor $3.62Variable manufacturing overhead $6.09Variable selling and administrative expenses $4.10 Fixed Costs per Year Fixed manufacturing overhead $244,590Fixed selling and administrative expenses $220,605
Siren Company sells the fishing lures for $26.25. During 2017, the company sold 81,000 lures and produced 93,000 lures.
1.) Prepare an absorption costing income statement for 2017.
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