Absorption and Variable Costing Income Statements: Production Exceeds Sales Glenview Company sells its product at a unit price of $13.00. Unit manufacturing costs are direct materials, $2.50; direct labor, $3.00; and variable manufacturing overhead, $1.50. Total fixed manufacturing costs are $50,000 per year. Selling and administrative expenses are $1.00 per unit variable and $20,000 per year fixed. Though 50,000 units were produced during 2017, only 44,000 units were sold. There was no beginning inventory. (a) Prepare a functional income statement using absorption costing. (Do not use negative signs with your answers.)

Glenview Company Functional (Absorption Costing) Income Statement For the year 2017
Sales
Cost of goods sold
Gross profit
Other expenses:
Variable selling and administrative
Fixed selling and administrative
Net income

(b) Prepare a contribution income statement using variable costing. (Do not use negative signs with your answers.)

Glenview Company Contribution (Variable Costing) Income Statement For the Year 2017
Sales
Variable expenses:
Cost of goods sold
Selling and administrative
Contribution margin
Fixed expenses:
Manufacturing overhead
Selling and administrative
Net income