Please assist with the following problem.
A company that makes cameras uses both variable and absorption costing. The following information pertains to the year just ended:
Units produced |
1,000 |
Units sold |
750 |
Selling price per unit |
$375 |
Variable product costs per unit |
$100 |
Variable selling expense per unit |
$20 |
Fixed manufacturing overhead for the year |
$70,000 |
Fixed administrative expense for the year |
$70,000 |
1) Prepare the income statement using absorption costing.