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Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: 0 25,000 21,500 3,500 $ Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 10 2 4 24 $ $ 75,000 110,000 $185,000 Assume that the company uses absorption costing. Required: 1. Compute the unit product cost for one storage cabinet Unit product cost 23 Unit product cost $ 23 2. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) $ 752,500 Absorption Costing Income Statement Sales Cost of goods sold: Beginning inventory $ 0 Add: Cost of goods manufactured 575,000 Goods available for sale 575,000 Add: Ending inventory 80,500 Contribution margin Selling and administrative expenses: Variable selling and administrative 86,000 Fixed selling and administrative 110,000 Operating income 494,500 258,000 196,000 62,000 $