Prepare comparative income statement using variable costing

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Reference no: EM132752717

The following data were taken from the records of D company for the years ending December 31, 2014 and 2015

( in units) 2014 2015

Inventory, Jan.1 -0 - 7,000

Production 20,000 18,000

Available for sales 20,000 25,000

Units sold 13,000 23,000

Inventory, Dec.31 7,000 2,000

Sales(20 per unit) 260,000 460,000

Variable manufacturing costs(7.50/unit) 150,000 135,000

Fixed manufacturing costs 50,000 54,000

Selling and administrative 45,000 75,000

Selling and administrative expenses are 60% fixed and 40% variable.

Problem 1: Prepare comparative income statement using variable and absorption costing.

Reference no: EM132752717

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