Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2022 are as follows: 

There was no beginning finished goods inventory. 

Instructions 

a. Prepare an absorption-costing income statement. 

b. Prepare a variable-costing income statement. 

c. Reconcile the net incomes under absorption costing and variable costing. 

d. Calculate the break-even point in sales units (pairs of skates) under the current cost structure. 

e. Prepare a throughput-costing income statement. 

f. Reconcile the net incomes under throughput costing and variable costing.

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Units produced Units sold Selling price Production information: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable marketing costs Fixed marketing costs 20,000 pairs 18,000 pairs $200 per pair $1,000,000 750,000 450,000 800,000 180,000 200,000