Roofing tile is Tops Corporation’s major product. It sold 88,400 cases of tile during the year. Variable cost of goods sold was $848,640; variable selling expenses were $132,600; fixed overhead was $166,680; fixed selling expenses were $152,048; and fixed administrative expenses were $96,450. The selling price was $18 per case. There were no partially completed jobs in process at the beginning or the end of the year.
Finished goods inventory had been used up at the end of the previous year. Prepare the calendar year-end income statement for Tops using:
1. The traditional reporting format
2. The variable costing format