The annual data that follow pertain to Escobar's Eyewear, a manufacturer of swimming goggles. $($Escobar$\text{'}$s Eyewear had no beginning Finished Goods Inventory in January.$)$

Chew the data

Read the requirements.

Requirement $1.$ Prepare both conventional $($absorption costing$)$ and contribution margin $($variable costing$)$ income statements for Escobar's Eyewear for the year ended December $31.($Round intermediary calculations to the nearest cent$)$

Begin by preparing Escobar's Eyewear's conventional $($absorption costing$)$ income statement for the year ended December $31.$