Use this format for the absorption costing income statements.

Sales

Finished Goods,beginning

Cost of Goods Manufactured

Cost of Goods Available for Sale

Finished Goods,ending

Unadjusted Cost of Goods Sold

Adjustment:Adjusted Cost of Goods Sold

Gross Profit

Variable Selling Expenses

Fixed Selling Expenses

Total selling expenses

NET OPERATING INCOME (ABSORPTION)

Use this format for the Variable Costing income statements.

Sales

Finished Goods, beginning

Cost of Goods Manufactured

Cost of Goods Available for Sale

Finished Goods,ending

Unadjusted Variable

Cost of Goods Sold

Adjustment:Adjusted Variable Cost of Goods Sold

Manufacturing Margin

Variable Selling Expenses

Contribution Margin

Fixed Overhead

Fixed Selling Expenses

Total Fixed Expenses

NET OPERATING INCOME (VARIABLE)

The GNR Company keeps no Work in Process inventories. At the beginning of 2019, the company had no beginning Finished Goods Inventory. The company had budgeted production and sales of 14,000 units for 2019. This amount is also the denominator level for 2019. Actual production for 2019 is 15,000 units, and actual sales for the year were 13,000 units. The company purchased and used the same amount of direct materials during the year. The actual selling price for 2019 was $80 per unit. At the end of 2018, any adjustments are closed totally to Cost of Goods Sold. Unit production costs using standard costing and actual costing are as follows for 2019: Direct Materials Direct Labor Variable Overhead Fixed Overhead Standard Cost per Unit $ 9.00 $17.10 $ 5.76 $11.25 Actual Cost per Unit $ 8.40 $19.80 $ 7.70 $12.00 When using standard absorption costing, the company has the following variances for 2019: Materials Price Variance $ 6,000 unfavorable Variable Overhead Spending Variance $ 9,900 unfavorable Materials Quantity Variance $15,000 favorable Variable Overhead Efficiency Variance $19,200 unfavorable Labor Rate Variance $16,500 favorable Fixed Overhead Budget Variance $22,500 unfavorable Labor Efficiency Variance $57,000 unfavorable Fixed Overhead Production Volume Var. $11,250 favorable For all costing methods, overhead is charged to production on the basis of direct labor hours. The standard for labor usage is .9 hours per unit, but the actual labor usage was 1.1 hours per unit. For both fixed and variable overhead, you may assume that the predetermined overhead rates PER HOUR for both normal costing and standard costing. The predetermined rates PER UNIT will not be the same for both normal and standard costing, since normal costing charges overhead costs based on actual hours and standard costing charges overhead based on standard hours. Actual period expenses (marketing, distribution, and customer service expenses) are $250,000 fixed per year and $10 variable per unit sold. REQUIRED: You are to prepare 6 income statements. The only heading that you need on each statement is to designate which costing method is being used. The costing methods are: 1. Actual absorption costing 2. Actual variable costing 3. Normal absorption costing 4. Normal variable costing 5. Standard absorption costing 6. Standard variable costing When adjusting Cost of Goods Sold, you can show the adjustment as just one number. For example, if you are using standard costing and you want to adjust Cost of Goods Sold using variances, you do not have to list each variance on the income statement itself. Just one net number will suffice. Notice that you are charging overhead to production based on direct labor hours, not units. So, using normal costing you are going to have to compute the underallocated or overallocated overhead based on the actual hours used produce the actual units. As noted earlier, the predetermined overhead rates per hour will be the same for both normal and standard costing, but not per unit. The GNR Company keeps no Work in Process inventories. At the beginning of 2019, the company had no beginning Finished Goods Inventory. The company had budgeted production and sales of 14,000 units for 2019. This amount is also the denominator level for 2019. Actual production for 2019 is 15,000 units, and actual sales for the year were 13,000 units. The company purchased and used the same amount of direct materials during the year. The actual selling price for 2019 was $80 per unit. At the end of 2018, any adjustments are closed totally to Cost of Goods Sold. Unit production costs using standard costing and actual costing are as follows for 2019: Direct Materials Direct Labor Variable Overhead Fixed Overhead Standard Cost per Unit $ 9.00 $17.10 $ 5.76 $11.25 Actual Cost per Unit $ 8.40 $19.80 $ 7.70 $12.00 When using standard absorption costing, the company has the following variances for 2019: Materials Price Variance $ 6,000 unfavorable Variable Overhead Spending Variance $ 9,900 unfavorable Materials Quantity Variance $15,000 favorable Variable Overhead Efficiency Variance $19,200 unfavorable Labor Rate Variance $16,500 favorable Fixed Overhead Budget Variance $22,500 unfavorable Labor Efficiency Variance $57,000 unfavorable Fixed Overhead Production Volume Var. $11,250 favorable For all costing methods, overhead is charged to production on the basis of direct labor hours. The standard for labor usage is .9 hours per unit, but the actual labor usage was 1.1 hours per unit. For both fixed and variable overhead, you may assume that the predetermined overhead rates PER HOUR for both normal costing and standard costing. The predetermined rates PER UNIT will not be the same for both normal and standard costing, since normal costing charges overhead costs based on actual hours and standard costing charges overhead based on standard hours. Actual period expenses (marketing, distribution, and customer service expenses) are $250,000 fixed per year and $10 variable per unit sold. REQUIRED: You are to prepare 6 income statements. The only heading that you need on each statement is to designate which costing method is being used. The costing methods are: 1. Actual absorption costing 2. Actual variable costing 3. Normal absorption costing 4. Normal variable costing 5. Standard absorption costing 6. Standard variable costing When adjusting Cost of Goods Sold, you can show the adjustment as just one number. For example, if you are using standard costing and you want to adjust Cost of Goods Sold using variances, you do not have to list each variance on the income statement itself. Just one net number will suffice. Notice that you are charging overhead to production based on direct labor hours, not units. So, using normal costing you are going to have to compute the underallocated or overallocated overhead based on the actual hours used produce the actual units. As noted earlier, the predetermined overhead rates per hour will be the same for both normal and standard costing, but not per unit