Jenster Manufacturing Company began its operations on January 1, 20A, and produces a single product that sells for $12 per unit. During 20A, 100,000 units of the product were produced, 90,000 of which were sold. There was no work in process inventory at the end of the year. Manufacturing costs and marketing and administrative expenses for 20A were as follows:

Required:
Prepare an operating income statement for 20A using direct costing.

Transcribed Image Text:

Fixed Variable Materials.... Factory overhead.... $2.00 per unit produced 1.50 per unit produced .50 per unit produced $200,000 90,000 20 per unit sold