During the most recent year, Osterman Company had the following data:
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Units in beginning inventory
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---
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Units produced
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10,000
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Units sold ($47 per unit)
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9,300
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Variable costs per unit:
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|
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Direct materials
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$9
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Direct labor
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$6
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Variable overhead
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$4
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Fixed costs:
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|
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Fixed overhead per unit produced
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$5
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Fixed selling and administrative expenses
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$138,000
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Required:
1. Calculate the cost of goods sold under variable costing.
2. Prepare an income statement using variable costing.