S6-17 Prepare income statements using variable costing and absorption costing with no change in inventory levels (Learning Objective 6). OMalleys Products manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: Selling price per unit is $60 Variable manufacturing costs per unit manufactured (includes DM, DL & variable MOH) $32 Variable operating expenses per unit sold $1 Fixed manufacturing overhead (MOH) in total for the year $120,000 Fixed operating expenses in total for the year $90,000 Units manufactured and sold for the year 10,000 units Requirements 1. Prepare an income statement for the upcoming year using variable costing. 2. Prepare an income statement for the upcoming year using absorption costing. Solution: