Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2017, Montier produced 25,000 units and sold 20,000 at $50 each.

Your answer is correct. Prepare an absorption costing income statement. MONTIER CORPORATION Income Statement For the Month Ended October 31, 2017 (Absorption Costing) Sales 1000000 Cost of Good Sold 640000 Gross profit 360000 Selling and administrative expenses 30000 Net Income / (Loss) T 330000 (b) Prepare a variable costing income statement. MONTIER CORPORATION Income Statement (Variable Costing)