Beta Company manufactures and sells large size tables to be used in the offices of the executives. One table is sold for $400. The selected data for year 2020 is given below:

5 points

Beta Company manufactures and sells large size tables to be used in the offices of the executives. One table is sold for $400. The selected data for year 2020 is given below: Manufacturing expenses: Direct materials per unit: $120 Direct labor per unit: $60 Variable manufacturing overhead per unit: $20 Fixed manufacturing overhead per year: $600,000 Non-manufacturing expenses: Variable selling and administrative expense per unit: $40 Fixed selling and administrative expense per year: $900,000 Inventory information: Units in opening inventory: 0 units Units produced during 2020: 10,000 units Units sold during 2020: 9,000 units Units in closing inventory: 1,000 units Required: a) Compute cost of one table under variable costing. [0.5] b) Prepare income statement if variable costing is used. [2] c) Compute cost of one table under absorption costing [0.5] d) Prepare income statement if absorption costing is used. [2]