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Exercise 19-9 (Algo) Absorption costing and variable costing income statements LO P2 Rey Companys only product sells for $221 per unit. Data for its first
Exercise 19-9 (Algo) Absorption costing and variable costing income statements LO P2
Rey Companys only product sells for $221 per unit. Data for its first year of operations follow.
Direct materials | $ 25 | per unit |
---|---|---|
Direct labor | $ 33 | per unit |
Variable overhead | $ 11 | per unit |
Fixed overhead | $ 325,000 | per year |
Variable selling and administrative expenses | $ 23 | per unit |
Fixed selling and administrative expenses | $ 210,000 | per year |
Units produced and sold | 25,000 | units |
1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.
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