P10-1

Absorption and variable costing income statements Biscayne Industries has determined the cost of manufacturing a unit of product as follows, based on normal production of 100,000 units per year: Operating statistics for March and April include the following: il 00 00 , 00 The selling price is $20 per unit. There were no inventories on March 1, and there is no work in process on April 30. Required: Prepare comparative income statements for each month under each of the following: 1. Absorption costing (include under- or overapplied fixed overhead). 2. Variable costing