Colorfora produces a single product. Its income statement under absorption costing is a follows

for

Sales $ per unit $

COGS $ per unit

Gross profit

Selling and administrative expenses

Net income $

Additional sales and production data:

Units produced

Units sold

The $ cost per unit product consists of the following:

Direct materials $ per unit

Direct labor per unit

Variable overhead per unit

Fixed overhead $ in total

Selling and administrative expenses consist of the following

Variable selling & admin

Fixed selling & admin

Total

Required:

Prepare the income statement for the company using absorption costing.

Prepare the income statement for the company using variable costing.

Prepare a reconciliation of the net income you calculated in steps &