Absorption and Variable Costing Comparisons Peachtree Company manufactures peach jam. Because of bad weather, its peach crop was small. The following data have been gathered for the summer quarter of 2009:

Beginning inventory (cases)	0
Cases produced	10,000
Cases sold	9,300
Sales price per case	$60
Direct materials per case	$9
Direct labor per case	$8
Variable manufacturing overhead per case	$3
Total fixed manufacturing overhead	$400,000
Variable selling and administrative cost per case	$2
Fixed selling and administrative cost	$48,000

• Functional Income Statement
• Contribution Income Statement
• Ending Inventory Analysis

(a) Prepare a functional income statement for the quarter using absorption costing. (Do not use negative signs with your answers, EXCEPT if you calculate a net loss.)

Peachtree Company Functional (Absorption Costing) Income Statement For the Summer Quarter 2009
Sales
Cost of goods sold:
Variable costs
Fixed costs
Goods available
Ending inventory
Gross profit
Operating expenses:
Variable selling and administrative
Fixed selling and administrative
Net income (loss)

Please answer all parts of the question.

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