1. A unique good is being produced in the business and financial information is recorded seriously. Here are given the financial information for last three periods: (40 Pts)

Direct Material Cost (Your School No. Last 2 digits plus 2.-$) $

Direkt Labor Cost (Your School No. Last 2 digits plus 1.-$) $

Variable Factory Overhead (Your School No. Last 2 digits $) $

Variable Marketing Expenses 15.-$

Fixed Manufacturing Cost 65,600.-$

Fixed Res. & Dev. Expenses 1,750.-$

Fixed Marketing Expenses 6,250.-$

Unit Sale Price 137.50 $

Quantity information for the last three periods are as follows:

PERIOD I PERIOD II PERIOD III

Units in the beginning of the period 250 U. 250 U.

Production units of the period 1.050 U. 880 U. 710 U.

Units sold in the period 800 U. 880 U. 960 U.

Units at the end of the period 250 U. 250 U. -

Inventories have to be evaluated with First in first out method.

Prepare the Income Statements of the business for last three periods

• With absorption method
• With variable method