19-2

Rey Companys single product sells at a price of $229 per unit. Data for its single product for its first year of operations follow.

1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.

Direct materials Direct labor Overhead costs 33 per unit 41 per unit Variable overhead Fixed overhead per year 11 per unit $ 351,00e per year Selling and administrative expenses Variable Fixed 31 per unit $ 226,00e per year Units produced and sold 27,000 units Required 1Required 2 Prepare an income statement for the year using absorption costing REY COMPANY Absorption Costing Income Statement Net income (loss) Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Net income (loss)