You have the following information regarding AJH Company:
Sales 25,000 units per year at $45 per unit
Production 30,000 units in 2004
At the beginning of 2004 there was no inventory.
Direct Materials are $12.00 per unit
Direct labor is $10.00 per unit
Variable manufacturing overhead costs are $8.00 per unit
Fixed manufacturing overhead costs are $150,000 per year
Marketing costs are all variable at $3.00 per unit
Administrative costs are all fixed at $75,000 per year
Required:
(a.) Prepare an income statement under absorption costing for2004
(b.) Prepare an income statement under variable costing for2004
(c.) Prepare an income statement under throughput costing for2004.
