The cost department of G. Smith and Sons, Inc., has established the following standards for manufacturing. ki5

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Normal capacity (units). Maximum capacity (units) Standard variable manufacturing cost per unit Variable marketing expenses per unit sold... Fixed factory overhead.... Fixed marketing expenses Sales price per unit.... Operating units for the year ended 19X8 were as follows: Beginning inventory....... 20,000 Sales... Production 175,000 180,000 Required: Prepare an income statement using direct costing. 200,000 250,000 $15 $5 $400,000 $250,000 $30 (A