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.

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(a)

Prepare an absorption costing income statement.

MONTIER CORPORATION Income Statement For the Month Ended October 31, 2017 October 31, 2017 For the Quarter Ended October 31, 2017 (Absorption Costing) Cost of Goods Manufactured Cost of Good Sold Sales Contribution Margin Fixed Costs Cost of Goods Available for Sale Net Income / (Loss) Selling and Administrative Expenses $ Cost of Good Sold Cost of Goods Manufactured Selling and Administrative Expenses Cost of Goods Available for Sale Sales Contribution Margin Fixed Costs Net Income / (Loss) Sales Gross profit Cost of Goods Available for Sale Cost of Good Sold Fixed Costs Cost of Goods Manufactured Net Income / (Loss) Selling and Administrative Expenses Selling and Administrative Expenses Contribution Margin Selling and administrative expenses Cost of Goods Manufactured Cost of Good Sold Net Income / (Loss) Sales Cost of Goods Available for Sale Sales Cost of Good Sold Selling and Administrative Expenses Contribution Margin Fixed Costs Net Income / (Loss) Cost of Goods Manufactured Cost of Goods Available for Sale $