1. Company has the following standard costs per unit for its one product (based on producing 10,000 units). The sales price is $500 per unit.:

Materials		100
Labor		50
Manufacturing OH:
Variable	25
Fixed	75
Total Manufacturing OH		100
Total standard cost		250

Overhead is applied to work in process based on direct labor dollars. Selling and admin expenses consist of $20/unit in variable cost, and fixed costs of $400,000 per year. During 2020, 10,500 units were produced, and 10,000 units were sold.

Prepare an income statement based on the info above for Schoolcraft Company for 2020 using absorption costing.

Absorption Costing:

			units	PPU	total
sales revenue
Cost of goods sold
	Materials
	Labor
	OH
	cost of goods manufactured
	less volume variance (U)
	less ending inventory
Gross Profit
Selling and admin
	variable
	fixed
Net income