Reference no: EM132561777
The following information had been gathered for the year ended December 2019 from Rjfn manufacturing company:
Units produced....................................... 10,000
Units sold............................................. 9,400
Beg. WIP ............................................. $10,000
End. WIP............................................. $2,000
Beg. Finished Goods .............................. $92,000
End. Finished Goods .............................. $200,000
Sales price per unit .................................... $60
Direct materials per unit .............................. $ 8
Direct labor per unit .................................... $ 9
Variable manufacturing overhead per unit ...... $ 3
Total fixed manufacturing overhead ............ $ 400,000
Variable selling and administrative cost ...... $ 20,000
Fixed selling and administrative cost ......... $ 15,000
Required:
Question 1: Prepare income statement using VARIABLE method.