Reference no: EM133080004

Question - Glenview Company sells its product at a unit price of $20. Unit manufacturing costs are direct materials, $5.00; direct labor, $2.00; and variable manufacturing overhead, $1.00. Total fixed manufacturing costs are $255,000 per year. Selling and administrative expenses are $1.00 per unit variable and $185,000 per year fixed. Though 60,000 units were produced during the year, only 54,000 units were sold. There was no beginning inventory. Prepare a functional income statement using absorption costing.