Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows:

Variable manufacturing costs		$41	per shade
Fixed manufacturing costs		$108,000
Variable selling and administrative expenses		$9	per shade
Fixed selling and administrative expenses		$250,000
Selling price		$92	per shade
Units produced		10,800	shades
Units sold		8,420	shades

(a)

Prepare an income statement using absorption costing.

ASIAN WINDOWS Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 Absorption Costing
VariableCost of goods soldEnding inventoryBeginning inventoryFixedGross profitSelling and administrative expensesNet incomeCost of goods manufacturedSales				$
LessAdd: Gross profitSalesCost of goods manufacturedFixedNet incomeBeginning inventorySelling and administrative expensesCost of goods soldVariableEnding inventory
SalesSelling and administrative expensesCost of goods manufacturedBeginning inventoryVariableNet incomeFixedEnding inventoryGross profitCost of goods sold
AddLess: Cost of goods manufacturedSelling and administrative expensesSalesFixedEnding inventoryGross profitVariableCost of goods soldNet incomeBeginning inventory
Ending inventoryNet incomeCost of goods manufacturedVariableGross profitCost of goods soldBeginning inventoryFixedSalesSelling and administrative expenses		$
VariableCost of goods manufacturedBeginning inventoryFixedCost of goods soldGross profitSalesSelling and administrative expensesEnding inventoryNet income
SalesNet incomeVariableFixedGross profitSelling and administrative expensesCost of goods soldCost of goods manufacturedBeginning inventoryEnding inventory				$

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