Special Ice company produces and sells bottled water. the following cost are available for year ended December, 31. 2020. At the beginning of 2020 the company had 500,000 bottles of water in the beginning inventory. During 2020 7500000 bottles were produced and 7500000 were sold.

Variable Cost per unit

Prime Cost 0.15

Variable Manufacturing Overhead 0.08

Variable Selling and Administrative expenses 0.02

Annual fixed Cost and expenses

Manufacturing Overhead 500000

Selling and Administrative expenses 100000

Prepare income statement for special ice company using the Absorption method of costing