Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per

Question:

Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2014, Montier produced 25,000 units and sold 20,000 at $50 each.

Instructions

(a) Prepare an absorption costing income statement.

(b) Prepare a variable costing income statement.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...