During 2022, Splish Corp. produced 30,000 units and sold 30,000 for $16.00 per unit. Variable manufacturing costs were $7.00per unit. Annual fixed manufacturing overhead was $60,000 ($2.00 per unit). Variable selling and administrative costs were $2.00per unit sold, and fixed selling and administrative expenses were $40,000. Suppose the accountant for Splish Corp. uses normal-absorption costing and uses the budgeted volume of 50,000 units to allocate the fixed overhead rather than the actual production volume of 30,000 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.

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Attempts: 1 of 2 used

(b)

Prepare a normal-absorption-costing income statement for the first year of operation.

SplishCorp. Income StatementNormal-Absorption Costing choose the accounting period December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
select an income statement item Fixed costsCosts of goods manufacturedContribution marginVariable costsOperating incomeSalesGross marginCost of goods soldBeginning inventorySelling and administrative expensesVolume varianceEnding inventory				$enter a dollar amount
select an opening section name Costs of goods manufacturedVolume varianceOperating incomeEnding inventoryVariable costsContribution marginGross marginBeginning inventoryFixed costsCost of goods soldSelling and administrative expensesSales:
select an income statement item Cost of goods soldSelling and administrative expensesVolume varianceOperating incomeSalesGross marginCosts of goods manufacturedEnding inventoryContribution marginFixed costsBeginning inventoryVariable costs		$enter a dollar amount
select between addition and deduction AddLess: select an income statement item Variable costsEnding inventoryCost of goods soldBeginning inventoryCosts of goods manufacturedSalesOperating incomeContribution marginSelling and administrative expensesVolume varianceGross marginFixed costs		enter a dollar amount
select a closing section name Volume varianceGross marginFixed costsCost of goods soldVariable costsCosts of goods manufacturedBeginning inventoryOperating incomeContribution marginSalesEnding inventorySelling and administrative expenses		enter a total amount for this section
select between addition and deduction AddLess: select an income statement item Cost of goods soldContribution marginEnding inventorySalesFixed costsCosts of goods manufacturedSelling and administrative expensesGross marginVolume varianceOperating incomeBeginning inventoryVariable costs		enter a dollar amount		enter a subtotal of the two previous amounts
select a summarizing line for the first part Cost of goods soldEnding inventoryGross marginVariable costsFixed costsSalesContribution marginCosts of goods manufacturedSelling and administrative expensesBeginning inventoryOperating incomeVolume variance				enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item Operating incomeBeginning inventoryEnding inventorySelling and administrative expensesSalesVolume varianceCost of goods soldFixed costsVariable costsContribution marginCosts of goods manufacturedGross margin				enter a dollar amount
select a closing name for this statement Volume varianceGross marginBeginning inventoryContribution marginOperating incomeCost of goods soldSalesEnding inventoryVariable costsFixed costsSelling and administrative expensesCosts of goods manufactured				$enter a total amount for this statement