1. Prepare an Absorption-Costing Income Statement down to Operating Income 2. Prepare a Variable-Costing Income Statement in the proper format down to Operating Income this exercise involves a situation where more units were sold than made

$ 1.92 $ Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: Variable costs per unit: Direct materials $ 2.85 Direct labor Variable overhead 1.60 Variable selling $ Fixed costs per year: Fixed overhead $ 224,000 Selling and administrative $ 96,000 $10.25 During the year, Borques produced 200,000 wooden pallets and sold 204,300 at each. Borques had 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing. 0.90