Question 4 Not complete Marked out of 4.17 P Flag question Absorption and Variable costing Income Statements: Production Exceeds Sales Glendale Company sells its product at a unit price of $12.00. Unit manufacturing costs are direct materials, $2.00; direct labor, $3.00; and variable manufacturing overhead, $1.50. Total fixed manufacturing costs are $15,000 per year. Selling and administrative expenses are $1.00 per unit variable and $11,000 per year fixed. Though 25,000 units were produced during 2009, only 21,000 units were sold. There was no beginning inventory. (a) Prepare a functional income statement using absorption costing. (Do not use negative signs with your answers.) 0 0 Glendale Company Functional (Absorption Costing) Income Statement For the year 2009 Sales $ Cost of goods sold Gross profit Other expenses: Variable selling and administrative $ 0 Fixed selling and administrative 0 Net income $ 0 0 0 (b) Prepare a contribution income statement using variable costing. (Do not use negative signs with your answers.) Glendale Company Contribution (Variable Costing) Income Statement For the year 2009 Sales $ 0 Variable expenses: Cost of goods sold $ 0 Selling and administrative 0 0 Contribution margin 0 Fixed expenses: Manufacturing overhead 0 Selling and administrative 0 0 Net income $ 0 Check