Question
Map Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price............................................... $140 Units in beginning
Map Company, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price............................................... | $140 |
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| Units in beginning inventory..................... | 0 |
| Units produced.......................................... | 8,400 |
| Units sold.................................................. | 8,200 |
| Units in ending inventory.......................... | 200 |
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| Variable costs per unit: |
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| Direct materials....................................... | $42 |
| Direct labor............................................. | $32 |
| Variable manufacturing overhead........... | $1 |
| Variable selling and administrative......... | $8 |
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| Fixed costs: |
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| Fixed manufacturing overhead................ | $280,800 |
| Fixed selling and administrative.............. | $98,000 |
Required:
Prepare an income statement for the month using the contribution format and the variable costing method.
Prepare an income statement for the month using the absorption costing method.
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