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In its first year of business, the McCormik Co. produced and sold 14,000 units and...

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Accounting

In its first year of business, the McCormik Co. produced and sold 14,000 units and incurred the following costs:

Manufacturing Costs:

Cost Per Unit
Direct Material $20
Direct Labor $5
Var. Manufacturing Overhead $8
Fixed Manufacturing Overhead $21
Variable Selling and Admin. $3
Fixed Selling and Admin. $9
Units Produced 15,000
Units Sold 13,000
Selling Price Per Unit 100
Tax Rate 25%

Show the net income under absorption and variable costing. Calculate Net income for 13,000 sold and 15,000 produced.

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