From the following prepare an income statement using absorption costing and then variable costing.
There are no WIP inventories and also no finished goods beginning inventory.
Sales 10,000 at $120
Direct Materials 10,500 at $28
Direct Labor 10,500 at $32
Variable Overhead 10,500 at $20
Commission 5% of units sold
Fixed Overhead = $80,000
Fixed Selling = $40,000
Fixed Administrative = $45,000