5. Nice Craft Inc manufacture hand sew dolls which have a selling price $850/unit. Here is information regarding its production Units in beginning inventory 0 Units produced 250 Units sold 225 Units in ending inventory 25 Variable cost per unit: Direct Material $100 Direct Labor $320 Variable manufacturing overhead $40 Variable selling and administrative $20 Fixed Costs: Fixed manufacturing overhead $60,000 Fixed selling and administrative $20,000

Reqired: 1. Prepare Income Statement using Absorption Costing 2. Prepare Income Statement using Variable Costing