AJ Manufacturing Company incurred $54,500 of fixed product cost and $43,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,350 of fixed and $13,900 of variable selling and administrative costs. The company sold all of the units it produced for $178,000.

Required

1. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).

AJ MANUFACTURING COMPANY Income Statement