Determine the net incomefrom the given data.
Variable and absorption costing unit product costs and income statement; Explanation of Difference in Net Operating Income [LO1, LO2, LO3]
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant of manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant\\\'s operation in the form of a worksheet.
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Beginning inventory
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$0
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Units Produced
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40,000
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Units Sold
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35,000
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Selling price per unit
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$60
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Selling and administrative expenses:
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Variable per unit
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$2
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Fixed (total)
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$560,000
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Manufacturing costs:
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Direct material cost per unit
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$15
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Direct labor cost per unit
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$7
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Variable manufacturing overhead cost per unit
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$2
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Fixed manufacturing overhead cost (total)
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$640,000
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Since the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
Required:
Assume that the company uses absorption costing.
Prepare an income statement for the month.