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The following is the current variable costing income statement for Dolly Corporation.
| Sales (5,000 units) |
|
$100,000 |
| Variable expenses Cost of goods sold |
$35,000 |
|
| Selling (10% of sales) |
$10,000 |
$45,000 |
| Contribution margin |
|
$55,000 |
| Fixed expenses |
|
|
| Manufacturing overhead |
$24,000 |
|
| Administrative |
$12,500 |
$36,500 |
| Operating income |
|
$18,500 |
Below is the following information on operations for Dolly Corporation.
| Beginning inventory (units) |
0 |
| Units produced (units) |
6,000 |
| Manufacturing costs |
|
| Direct labor (per unit) |
$5.00 |
| Direct materials (per unit) |
$2.30 |
| Variable overhead (per unit) |
$2.40 |
Required:
Prepare an absorption costing income statement.
