Question 9

Following is selected data for the year ended December 31, 2020 for Fabio Manufacturing Inc.

Selling price: $30.30 per unit

Units produced 310,300; sold 273,300; beginning inventory zero

Variable unit costs:

Manufacturing $21.00 (direct materials $10.40, direct labour $6.40, and variable overhead $4.20);

Selling and administrative expenses $5.80

Fixed costs:

Manufacturing overhead $441,180, based on a budgeted volume of 326,800 units

Selling and administrative expenses $541,500

The company expenses production volume variances to cost of goods sold in the accounting period in which they occur.

Calculate a normal-costingincome statementfor 2020.

(Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

Fabio Manufacturing Inc.

Income Statement

For the Year Ended December 31, 2020

Absorption Costing Using Normal Costing

Sales ____________

Cost of Goods Sold ____________

Favourable Volume Variance ____________

Gross Margin ____________

Variable Selling and Administrative Expenses ____________

Fixed Selling and Administrative Expenses ____________

Net income / (Loss) ____________