Chandler Company sells its product for $$108$ per unit. Variable manufacturing costs per unit are $$49,$ and fixed manufacturing costs at the normal operating level of $12,000$ units are $$240,000.$ Variable selling expenses are $$17$ per unit sold. Fixed administrative expenses total $$104,000.$ Chandler had no beginning inventory for the year. During the year, the company produced $12,000$ units and sold $9,000.$ Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing?

Calculate reported income using each method.

Do not use negative signs with any answers.

Absorption Costing Income Statement

Sales Answer

Cost of Goods Sold:

Beginning Inventory Answer

Variable Costs Answer

Fixed Costs Answer

Less: Ending Inventory Answer

Cost of Goods Sold Answer

Answer

Answer

Answer

Answer

Administrative expense Answer

Net Income Answer

Variable Costing Income Statement

Sales Answer

Cost of Goods Sold:

Beginning Inventory Answer

Variable Costs Answer

Answer

Answer

Variable cost of goods sold Answer

Answer

Answer

Answer

Answer

Fixed costs:

Answer

Answer

Administrative Expense Answer

Total Fixed Cost Answer

Net Income Answer