Walton Manufacturing Company makes a product that sells for $$75\mathrm{.}80$ per unit. Manufacturing costs for the product amount to $$27\mathrm{.}00$ per unit variable, and $$77,040$ fixed. During the current accounting period, Walton made $3,600$ units of the product and sold $3,000$ units. Selling and administrative expenses were zero.

Required

Prepare an absorption costing income statement.

Prepare a variable costing income statement.

Answer rating: 100% (QA)

To prepare an absorption costing income statement we need to allocate both variable and fixed manufacturing costs to the units produced Absorption Costing Income Statement Sales Revenue 3000 units sol... View the full answer