Prepare an income statement for month using given methods

Reference no: EM131884589

Question: Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $138

Units in beginning inventory 0

Units produced 7,400

Units sold 7,200

Units in ending inventory 200

Variable costs per unit:

Direct materials $42

Direct labor $32

Variable manufacturing overhead $1

Variable selling and administrative $8

Fixed costs:

Fixed manufacturing overhead $280,800

Fixed selling and administrative $98,000

Required: a. Prepare an income statement for the month using the contribution format and the variable costing method.

b. Prepare an income statement for the month using the absorption costing method.

Reference no: EM131884589

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