Prepare an income statement under absorption costing

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Question - A manufacturer of tennis rackets, began operations this year. The company produced 5,000 rackets and sold 3,900. Each racket was sold at a price of $80. Fixed overhead costs are $60,000 for the year, and fixed selling and administrative costs are $64,200 for the year. The company also reports the following per unit variable costs for the year:

Direct materials $11.79

Direct labor 7.76

Variable over-head 4.66

Variable selling and administrative expenses 1.66

Required - Prepare an income statement under absorption costing.

Reference no: EM133052542

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