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Rey Companys single product sells at a price of $223 per unit. Data for its single product for its first year of operations follow.

Direct materials	$	27	per unit
Direct labor	$	35	per unit
Overhead costs
Variable overhead	$	13	per unit
Fixed overhead per year	$	405,000	per year
Selling and administrative expenses
Variable	$	25	per unit
Fixed	$	214,000	per year
Units produced and sold		27,000	units

A. Prepare an income statement for the year using absorption costing Complete this question by entering your answers in the tabs below.

	REY COMPANY Absorption Costing Income Statement ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Net income (loss) ?

B. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below.

	REY COMPANY Variable Costing Income Statement ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Net income (loss) ?

Note: Please solve the problem completely, thank you.

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