Richmond Company manufactures a product with the following information available for the years 20X0 and 20X1. The company had no inventory at the beginning of 20X0. The standard costs per unit to manufacture one unit for both years are provided below. Fixed selling and administrative costs were $220,000. All variances are charged or credited to cost of goods sold. The fixed manufacturing overhead cost per unit is based on a normal capacity of 30,000 units. REQUIRED: (1) (2) Using the attached forms, prepare income statements, in appropriate form, using full absorption costing, for years 20X0 and 20X1. Using the attached forms, prepare income statements, in appropriate form, using variable costing, for years 20X0 and 20X1. RICHMOND COMPANY INFORMATION CONCERNING SALES AND PRODUCTION OF ITS PRODUCT FOR YEARS 20X0 AND 20X1 20X0 20X1 Selling Price Per Unit $ 200.00 $ 200.00 Number of Units Produced 30,000 25,000 Number of Units Sold 25,000 22,000 RICHMOND COMPANY STANDARD MANUFACTURING AND OPERATING COSTS PER UNIT FOR ONE UNIT OF OUTPUT Direct Material $ 25.00 Direct Labor 70.00 Variable Manufacturing Overhead 15.00 Fixed Manufacturing Overhead 25.00 Variable Selling Commissions 20.00 (1) RICHMOND COMPANY INCOME STATEMENT--FULL ABSORPTION COSTING FOR YEARS 20XO AND 20X1 20X0 20X1 Sales Revenue Cost of Goods Sold: Cost of Goods Available For Sale Cost of Goods Sold--Unadjusted Under-or (Over)applied Manufacturing Overhead Cost of Goods Sold--Adjusted Gross Margin From Sales Operating Expenses: Total Operating Expenses Operating Income RICHMOND COMPANY INCOME STATEMENT--VARIABLE COSTING FOR YEARS 20X0 AND 20X1 20X0 20X1 Sales Revenue Variable Cost of Goods Sold: Cost of Goods Available For Sale Variable Cost of Goods Sold--Unadjusted Under-or (Over)applied Manufacturing Overhead Variable Cost of Goods Sold--Adjusted Manufacturing Margin Other Variable Expenses: Contribution Margin Fixed Expenses: Total Fixed Expenses Operating Income