Question 5555t

Q4. Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price ........ .....4.arrest4+4192414142 $92 Units in beginning inventory ......... ...... 300 Units produced ........ ...xx.. . .4xxxx+464xxx.*ray 5,900 Units sold........ ....possesses2821486418951546459:: 6,000 Units in ending inventory ............ .141 200 Variable costs per unit: Direct materials ..... ....418418146845 $39 Direct labor... $19 Variable manufacturing overhead.......... $2 Variable selling and administrative ...... $11 Fixed costs: Fixed manufacturing overhead. $88,500 Fixed selling and administrative .......... $36,000 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing