Trez Company has the following information for 2019, its first year of operations:

Units produced	100,000
Units sold	80,000 at $50 per unit
Manufacturing Costs:
Direct materials	$5 per unit
Direct labor	$14 per unit
Variable manufacturing overhead	$2 per unit
Fixed manufacturing overhead	$900,000 total
Selling and administrative expenses:
Variable selling & administrative expenses	$2.25 per unit
Fixed selling & administrative expenses	$350,000 total

Answer the following questions to complete the absorption costing income statement. Items in the first (left) column should be answered with words. Items in the other three columns should be answered as a numerical amount. Do not use dollars signs or commas in any of the numbers. If a number needs to be shown as negative, use parenthesis, but do not use a minus sign.

Below is a word bank. You may not need some words from the word bank. You may not abbreviate except as shown below. Type the words exactly as shown.

Sales

Rent Revenue

Cash

Accounts Receivable

Direct Materials

Direct Labor

Indirect Materials

Indirect Labor

Variable manufacturing overhead

Fixed manufacturing overhead

Variable selling & administrative expenses

Fixed selling & administrative expenses

Contribution margin

Gross profit

Beginning inventory

Plus Ending inventory

Less Ending inventory

Net income

Net loss

Trez Company

Income Statement (Absorption Costing)

Year Ended December 31, 2019

Beginning inventory
Cost of goods manufactured:
Cost of goods available for sale
Cost of goods sold
Selling & administrative expenses: