Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2016 are as follows:

Instructions
(a) Prepare an income statement using absorption costing.
(b) Prepare an income statement using variable costing.

Transcribed Image Text:

Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Selling price Units produced Units sold $40 per shade $9 per shade $90 per shade $100,000 $250,000 10,000 shades 8,500 shades