The annual data that follows pertain to Sea Down There, a manufacturer of swimming goggles $($the company had no beginning inventory$)$:

$($Click the icon to view the data.$)$

Read the requirements.

Requirement $1.$ Prepare both conventional $($absorption costing$)$ and contribution margin $($variable costing$)$ income statements for Sea Down There for the

year. Begin with the conventional $($absorption costing$)$ income statement.

Sea Down There

Income Statement $($Absorption Costing$)$

For the Year Ended December $31$

Less:

Less: Operating expenses