E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1] The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3,000 2,500 350 80 Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($225,000 - 3,000 units) Total variable selling expenses ($15 per unit sold) Total fixed general and administrative expenses 60 10 75 37,500 65,000 Required: Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. (Do not leave CRYSTAL COLD COOLERS INC. Full Absorption Costing Income Statement Sales Less: Cost of Goods Sold Beginning Inventory of Cost of Goods Manufactured 675,000 $ 875,000 Cost of Goods Available for Sale Ending Inventory 675,000 112,500 Cost of Goods Sold Gross Margin 562,500 312,500 Less: Non-Manufacturing Expenses Variable Selling Expense Fixed General and Administrative Expenses Net Operating Income $ 210,000 CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Sales $ 875,000 Less: Variable Cost of Goods Sold Beginning Inventory Variable Manufacturing Costs $ 0 450,000 Cost of Goods Available for Sale Ending Inventory Variable Cost of Goods Sold 450,000 75,000 375,000 Variable Selling Expenses 37,500 462,500 Contribution Margin Less: Fixed Costs Fixed General and Administrative Expenses Fixed Manufacturing Overhead Expenses Net Operating Income $ 172,500