Jarods Baseball Bat Manufacturing produced 80,000 baseball bats in 2005. The company sold
60,000 bats at a selling price of $50 a bat. The company had the following costs related to the
production of 80,000 bats.
Direct Materials			$800,000
Direct Labor			$400,000
Variable Overhead			$250,000
Fixed Overhead			$200,000
Variable Selling/Admin			$250,000
Fixed Selling/Admin			$200,000
1) Calculate the unit COGS under both absorption and variable costing.
2) Prepare an Income Statement under both absorption and variable costing.