Prepare income statements using variable costing andabsorption costing.
Alexandra Manufacturing manufactures a single product.? Cost,sales, and production information for the company and its singleproduct is as? follows:
Sales price per unit $49
Variable manufacturing costs per unit manufactured (DM,DL andvariable MOH) $30
Variable operating expenses per unit sold $3
Fixed manufacturing overhead (MOH) in total for the year$114,000
Fixed operating expenses in total for the year $46,000
Units manufactured during the year 19,000 units
Units sold during the year 16,500 units
Requirement 1. Prepare an income statement forthe upcoming year using variable costing.
Requirement 2. Prepare an income statement forthe upcoming year using absorption costing.
