Question - Lincoln Company, which has only one product, has provided the following data concerning its most recent month of operations.
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Selling price
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$150
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Units in beginning inventory
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0
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Units produced
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3,000
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Units sold
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2,900
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Units in ending inventory
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100
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Variable costs per unit:
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Direct materials
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$27
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Direct labor
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$18
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Variable manufacturing overhead
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$10
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Variable selling and admin
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$12
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Fixed costs:
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Fixed manufacturing overhead
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$75,000
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Fixed selling and admin
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$30,000
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Required:
Prepare an income statement for the month using the variable costing method.
Prepare an income statement for the month using the absorption costing method.