Question

Charlassier Corp. manufactures and sells laptop computers anduses standard costing. For the month of September there was nobeginning inventory, there were 3,000 units produced and 2,500units sold. The normal budgeted production for a month is 3,000units. The manufacturing variable cost per unit $385 and thevariable operating cost per unit was $312.50. The fixedmanufacturing cost is $450,000 and the fixed operating cost is$75,000. The selling price per unit is $925.

A: Prepare an income statement for Charlassier Corp. forSeptember under variable costing.

B: Prepare an income statement for Charlassier Corp. forSeptember under absorbtion costing.