$16$

Exerclse $19-8($Algo$)$ Varlable costing Income statement LO P$2$

$476$ points $ar$ Print

ax$*$

Kenzl, a manufacturer of kayaks, began operations thls year. During thls year, the company produced $1050$ kayaks and sold $800$ at o price of $$1,050$ each. At yearend, the compony reported the following income statement information using absorpton costing.

Sales $(8001,050)$

cost of goods sold $(800$ & $458)$

Gross profit

Sollirs and adinistrative expenses

Inconet

Additional Information

a$.$ Product cost per kayak under abeorpton costing totals $$450,$ which consists of $$350$ in direct materials, direct labor, and varlable overhead costs and $$100$ in fixed overhead cost Fixed overhead of $$100$ per unit is based on $$105,000$ of fixed overhead per year divided by $1,050$ ksyoks produced.

Piepors on income statement for the current year under vorleble costing.