ABC a manufacturing company that produces a single product has the following cost info:

Number of units budgeted and produced 40,000 units

Begin inventory 10,000 units

Ending inventory .. 20,000 units

Selling price per unit $ 125

Variable Cost per unit:

Direct Materials $ 20

D. Manuf Labour .$ 40

Var Manuf Overhead . $ 10

Var selling expense . $ 10 per unit sold

Fixed cost per year :

Fixed manuf overhead $ 600,000

Fixed selling and admin $ 100,000

Required: PREPARE AN ABSORPTION INCOME STATEMENT AND A VARIABLE INCOME STATEMENT