where the problem says the firm sold 204,300 units. Additional Information: Change the sales price per unit to $10.25 and the total Fixed Overhead amount to $224,000

3-66: Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year as follows.

Variable costs per unit:

direct materials $2.85

Direct labor $1.92

variable overhead 1.60

variable selling .90

fixed costs per year:

Fixed overhead 180,000

selling and administrative $96,000

During the year, Borques produced 200,000 wooden pallets and sold 204,300 and $9 each. Borques had 8,200 pallets inn beginning finished good inventory; costs have not changed from last year to this year. An actual costing system is used for product costing.

PART #1: Prepare an Absorption-Costing Income Statement down to Operating Income

#2: Then prepare a Variable-Costing Income Statement in proper format down to Operating Income