Absorption and Variable Costing Income Statements: Production Exceeds Sales Glenview Company sells its product at a unit price of $20. Unit manufacturing costs are direct materials, $5.00; direct labor, $2.00; and variable manufacturing overhead, $1.00. Total fixed manufacturing costs are $255,000 per year. Selling and administrative expenses are $1.00 per unit variable and $185,000 per year fixed. Though 60,000 units were produced during the year, only 54,000 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
Sales		Answer
Cost of goods sold		Answer
Gross profit		Answer
Other expenses:
Variable selling and administrative	Answer
Fixed selling and administrative	Answer	Answer
Net income		Answer

(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
Sales		Answer
Variable expenses:
Cost of goods sold	Answer
Selling and administrative	Answer	Answer
Contribution margin		Answer
Fixed expenses:
Manufacturing overhead	Answer
Selling and administrative	Answer	Answer
Net income		Answer