Response to the following problem:
Sales 38,000 unites
Sales price $50 per unit
Actual variable manufacturing costs $1,400,000
Actual fixed manufacturing costs $228,000
Actual variable nonmanufacturing costs $76,000
Actual fixed nonmanufacturing costs $135,000
Work in process inventory, January 1, 2015 0
Finished goods inventory, January 2015 0
Direct materials inventory January 2015 0
Work in process inventory December 31, 2015 0
Direct material inventory, December 31, 2015 0
Expected production 40,000 units
Actual production 40,000
A) Using the variable-costing approach, prepare an income statement for the year ended December 31, 2015, Assume the actual fixed costs were equal to budgeted fixed costs
B) Using the absorption-costing approach, prepare an income statement for the year ended December 31, 2015. Assume the actual fixed costs were equal to budgeted fixed costs.