Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last years operations follow:

Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 0 25,000 21, 500 3,500 $ 8 10 2 4 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ 24 $ 75,000 110,000 $ 185,000 Assume that the company uses absorption costing. Required: 1. Compute the unit product cost for one storage cabinet. Unit product cost 2. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) $ $ 752,500 Absorption Costing Income Statement Sales Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory $ 0 0 752,500 Selling and administrative expenses: 110,000 Fixed selling and administrative Operating income 110,000 642,500 $