Reference no: EM131784392

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 $8.10
Direct labor $3.73
Variable manufacturing overhead $6.26
Variable selling and administrative expenses $4.21
Fixed Costs per Year
Fixed manufacturing overhead $253,800
Fixed selling and administrative expenses $226,908

Siren Company sells the fishing lures for $27.00. During 2017, the company sold 80,000 lures and produced 94,000 lures.

Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)