Prepare vitamin t-shirts income statement for the year

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Reference no: EM13518348

Vitamin T-Shirts, Inc. budgeted the following costs for its first year of manufacturing operations. These costs are based on a volume of 50,000 T-shirts produced and sold:


Total variable

cost per year

Total fixed

cost per year

Direct materials

$36,000

-

Direct labor

$24,000

-

Manufacturing overhead

$60,000

$72,000

Selling and administrative

$12,000

$48,000

During the first year of operations, Vitamin actually produced 50,000 T-shirts but only sold 48,000 T-shirts. Actual costs did not fluctuate from the cost behavior patterns described above. The 48,000 T-shirts were sold for $10 per T-shirt.

Required:

Using the variable costing method, prepare Vitamin T-Shirts' income statement for the year.

Reference no: EM13518348

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