Refer to the data for Osterman Company below.
Units in beginning inventory
Units produced ..........................10,000
Units sold ($47 per unit) .................9,300
Variable costs per unit:
Direct materials ..............................$9
Direct labor ...................................$6
Variable overhead ...........................$4
Fixed costs:
Fixed overhead per unit produced ........$5
Fixed selling and administrative,..$138,000
Required:
1. Calculate the cost of goods sold under variable costing.
2. Prepare an income statement using variable costing.