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Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2022 are as follows:

Variable manufacturing costs	$40	per shade
Fixed manufacturing costs	$100,000
Variable selling and administrative expenses	$9	per shade
Fixed selling and administrative expenses	$250,000
Selling price	$90	per shade
Units produced	10,000	shades
Units sold	8,500	shades

Instructions

1. Prepare an income statement using absorption costing.
2. Prepare an income statement using variable costing.

Calculate total product cost and prepare an income statement using normal-absorption costing.