Crystal Glass Costing Method

Crystal Glass, Inc.
Statement of Income
For the year ended October 31, 2009

sales revenue $12,008,450
variable cost 8,475,361
contribution margin 3,533,089
fixed cost 1,845,902
net income 1,687,187

You are given the following additional information:

Variable cost:

manufacturing $6,356,521
S&A 2,118,840
beginning inventory 250,000 units
production 2009 500,000 units
sales 2009 600,000 units

A. What type of costing method is used by Crystal Glass?

B. Does the method comply with GAAP? If not, what costing method should be used?
What would net income be?