EXHIBITS Selected Financial Data close all exhibits Selected Financial Data To: Rachel Parkes, Accountant From: Boris Humble, Accounting Manager RE: Variable Costing Income Statements Hi Rachel, Based on the information provided in the exhibit, prepare the variable costing income statements for 20X2 and 20X3. For each item, enter the appropriate amount in the associated cell. Enter all amounts as positive whole numbers. If the amount is zero, enter a zero (0). Olsson Manufacturing Item Income Statements for the years ended 12/31/X2 and 12/31/X3 20X2 The operating and financial data for preparing the variable costing income statements are presented below: Units produced Units sold Unit price Unit direct materials cost Unit direct labor cost 20X3 Unit variable manufacturing overhead Unit fixed manufacturing overhead 123 123 20X1 20X2 20X3 25,000 25,000 25,000 22,000 26,000 27,000 $60 $62 $65 $25 $26 $27 $16 $16.50 $17 4.0 4.2 4.4 3.0 3.0 3.1 1. Beginning inventory 2. Cost of goods manufactured 3. Ending inventory 4. Contribution Margin 5. Operating income 123 123 Besides manufacturing costs, we also incur selling expenses. Selling expenses consists of a fixed component of $125,000 and a variable component equaling 2.5 times the number of units sold. Also, the LIFO method is used to account for inventory. Please let me know if you need any additional information. Regards, 123 123 Boris 123 123 123 123 x