The variable-costing income statement for Wyoming Company for last year is as follows:

Sales (50,000 units)			$15,000,000
Variable expenses:
Cost of goods sold	$3,000,000
Selling (10% of sales)	1,500,000		4,500,000
Contribution margin			$10,500,000
Fixed expenses:
Manufacturing overhead	$2,200,000
Administrative	500,000		2,700,000
Operating income			$7,800,000

Selected data for last year concerning the operations of the company are as follows:

Beginning inventory	-0- units
Units produced	55,000 units
Manufacturing costs:
Direct labor	$35.00 per unit
Direct materials	15.00 per unit
Variable overhead	10.00 per unit

Required:

Prepare an absorption-costing income statement for last year.

Wyoming Company Absorption-Costing Income Statement

CashFinished goods inventoryGross marginSalesSales		$Sales
Less: Cost of goods soldLess: Direct laborLess: Materials usedLess: OverheadLess: Overhead		Less: Overhead
Gross margin		$fill in the blank 5
Less operating expenses:
Administrative revenuesFinished goodsSelling expenseWork-in-processSelling expense	$Selling expense
Administrative expenseFinished goodsSales revenuesWork-in-processAdministrative expense	Administrative expense	Administrative expense
Operating incomeOperating lossOperating income		$Operating income

The variable-costing income statement for Wyoming Company for last year is as follows: $15,000,000 Sales (50,000 units) Variable expenses: Cost of goods sold Selling (10% of sales) $3,000,000 1,500,000 4,500,000 Contribution margin $10,500,000 Fixed expenses: Manufacturing overhead Administrative $2,200,000 500,000 2,700,000 Operating income $7,800,000 Selected data for last year concerning the operations of the company are as follows: Beginning inventory -0- units Units produced 55,000 units Manufacturing costs: Direct labor Direct materials Variable overhead $35.00 per unit 15.00 per unit 10.00 per unit Required: Prepare an absorption-costing income statement for last year. Wyoming Company Absorption-Costing Income Statement Sales $ 15,000,000 Less: Overhead 550,000 X Gross margin Less operating expenses: Selling expense 4,500,000 x Administrative expense 500,000 5,000,000 X Operating income 7,800,000 X