Lester 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

Variable Costs:

Beginning Inventory $Answer

Variable Cost of Goods Manufactured $Answer

Cost of Goods Available for Sale $Answer

Ending Inventory $Answer

Variable Manufacturing Cost of Goods Sold $Answer

Variable Advertising Costs $Answer

$Answer

Contributed Margin $Answer

Operating Expenses

Fixed Manufacturing Costs $Answer

Fixed Advertising Costs $Answer

$Answer

Income from Operations $Answer

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 $Answer