Reference no: EM131798334

The following data are available for Atkinson Company for the year ended December 31, 2015:

Sales 38,000 units

Sales price $50 per unit

Actual variable manufacturing costs $1,400,000

Actual fixed manufacturing costs $228,000

Actual variable nonmanufacturing costs $76,000

Actual fixed nonmanufacturing costs $135,000

Work-in-process inventory, January 1, 2015 0

Finished goods inventory, January 1, 2015 0

Direct materials inventory, January 1, 2015 0

Work-in-process inventory, December 31, 2015 0

Direct materials inventory, December 31, 2015 0

Expected production 40,000 units

Actual production 40,000 units

Required:

A) Using the variable-costing approach, prepare an income statement for the year ended December 31, 2015. Assume actual fixed costs were equal to budgeted fixed costs.

B) Using the absorption-costing approach, prepare an income statement for the year ended December 31, 2015. Assume actual fixed costs were equal to budgeted fixed costs.