question the following data comes from the records of the orth and ott company there 4290217
Question
The following data comes from the records of the Orth and Ott Company (there was no beginning inventory):
Prepare an income statement using absorption costing.
|
Production (units) |
20,000 |
|
Sales (units) |
17,000 |
|
Selling price (per unit) |
$30.00 |
|
Variable costs (per unit): |
|
|
Direct materials |
$8 |
|
Direct labor |
4 |
|
Manufacturing Overhead |
2 |
|
|
|
|
Fixed Costs: |
|
|
Manufacturing overhead |
$80,000 |
|
Selling Expense |
40,000 |
|
Administrative Expenses |
36,000 |
|
Variable selling expenses (per unit) |
$1 |