ester Company provides the following information for $2019$:

Variable Manufacturing Costs per Unit Manufactured $$37$

Variable Advertising Costs per Unit Sold $$31$

Fixed Manufacturing Overhead Costs $$218,000$

Fixed Advertising Costs $$119,000$

Selling Price per Unit $$90$

Beginning Inventory $($Units$)0$

Production Volume $24,000$

Sales Volume $19,000$

Do not enter dollar signs or commas in the input boxes.

Round all answers to the nearest whole number.

a$)$ Prepare a contribution margin statement for the year using the variable costing method.

Lester Company

Contribution Margin Statement

For the Year Ending December $31,2019$

Revenues $Answer

$1710000$

Variable Costs:

Beginning Inventory $Answer

$0$

Variable Cost of Goods Manufactured $Answer

$888000$

Cost of Goods Available for Sale $Answer

$888000$

Ending Inventory $Answer

$5000$

Variable Manufacturing Cost of Goods Sold $Answer

$518000$

Variable Advertising Costs $Answer

$594000$

$Answer

$1112000$

Contributed Margin $Answer

$598000$

Operating Expenses

Fixed Manufacturing Costs $Answer

$218000$

Fixed Advertising Costs $Answer

$119000$

$Answer

$337000$

Income from Operations $Answer

$261000$

b$)$ Prepare an income statement for the year using the absorption costing method.

Lester Company

Income Statement

For the Year Ending December $31,2019$

Revenues $Answer

Cost of Goods Sold

Beginning Inventory $Answer

Variable Manufacturing Costs $Answer

Fixed Manufacturing Overhead Costs $Answer

Cost of Goods Available for Sale $Answer

Ending Inventory $Answer

$Answer

Gross Margin $Answer

Operating Expenses:

Advertising Costs $Answer

Income from Operations