Bigboy inc, Inc., a manufacturer of frozen food, began operations on July 1 of the current year. During this six month period, the company produced 140,000 units of product and sold 140,000 units of product at a sales price of $125 per unit. Cost information for this six month period is as follows:
Production Costs Direct materials $13 per unit Direct labor $6 per unit Variable overhead $2,100,000 in total Fixed overhead $3,220,000 in total Non-production Costs Variable selling and administrative costs $91,000 in total Fixed selling and administrative costs $458,000 in total
A. Prepare the company's December 31 income statement (complete with proper headings) for the current six month period under absorption costing
B. Prepare the company's December 31 income statement (complete with proper headings) for the current six month period under variable costing.