Absorption and Variable Costing income statements
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Magnani Company, which has only one product, has provided the following data concerning its operations for October, 2008.
Selling price $97
Units in beginning inventory -0-
Units produced 6,600
Units sold 6,200
Units in ending inventory 400
Variable costs per unit:
Direct materials $40
Direct Labor $10
Variable manufacturing overhead $4
Variable operating expenses $9
Fixed Costs:
Fixed manufacturing overhead $184,800.00
Fixed operating expenses $ 12,400.00
A. Prepare an absorption costing income statement for October, 2008.
B. Prepare a variable costing income statement for October, 2008.
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The solution explains how to calculate the Absorption and Variable Costing income statements.
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