3.

During the most recent year, Osterman Company had the following data:

Units in beginning inventory	---
Units produced	10,000
Units sold ($47 per unit)	9,300
Variable costs per unit:
Direct materials	$9
Direct labor	$6
Variable overhead	$4
Fixed costs:
Fixed overhead per unit produced	$5
Fixed selling and administrative	$138,000

Required:
1.	Calculate the cost of goods sold under absorption costing.
2.	Prepare an income statement using absorption costing.

Amount Descriptions Refer to the list below for the exact wording of an amount description within your income statement.

Amount Descriptions

Contribution margin

Cost of goods sold

Gross margin

Operating income

Operating loss

Sales

Selling and administrative expenses

COGS and Income Statement 1. Calculate the cost of goods sold under absorption costing. The cost of goods sold under the absorption costing method is . 2. Prepare an income statement using absorption costing. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement.

Osterman Company

Absorption-Costing Income Statement

For the Most Recent Year

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5