Reference no: EM133133861

Question - Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2: (in millions)

Sales $23,650

Cost of goods sold $20,100

Selling, administrative, and other expenses 2,130

Total expenses $22,230

Income from operations $1,420

Assume that there were $5,200 million fixed manufacturing costs and $1,180 million fixed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows:

January 1 $2,840 million

December 31 $3,310 million

Assume that 30% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period.

Required - Prepare an income statement according to the variable costing concept for Ansara Company for 20Y2.