Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operations are shown below:

The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.
Instructions
Assuming the company uses absorption costing:
(a) Calculate the manufacturing cost per unit.
(b) Prepare an absorption-costing income statement for the first month of operation.

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Beginning inventory Units produced Units sold Manufacturing Costs 0 units 12,000 10,000 Fixed overhead Variable overhead Direct labour Direct material $108,000 $3 per unit $12 per unit $30 per unit Selling and administrative costs ixe $200,000 Variable $4 per unit sold