Whiff Candles estimated overhead costs at the start of 2020 to be $3,600,000 for the year. In 2020, Whiff planned for and produced 1,800,000 candles with variable manufacturing costs of $0.25 per candle and total actual fixed overhead costs of $3,200,000. They sold 1,550,000 candles for $5 each during the year. Fixed selling and admin costs for 2020 totalled $456,000.

Instructions

Prepare a absorption-costing income statement and Variable Costing Income Statement