Prepare income statements under absorption costing and variable costing.

E8.17 (LO1) Asian Windows manufactures a hand-painted bamboo window shade for standard-size wind vs. Production and sales data for

2022 are as follows:

Variable manufacturing costs

Fixed manufacturing costs

Variable selling and administrative expenses

Fixed selling and administrative expenses

Selling price

Units produced

Units sold

$40 per shade

$100,000

$9 per shade

$250,000

$90 per shade

10.000 shades

8,500 shades

Instructions

a. Prepare an income statement using absorption costing.

b. Prepare an income statement using variable costing.

Calculate total product cost and prepare an income statement using normal-absorption costing.

*E8.18 (LO1, 4) Information for Asian Windows is given in E8.17.

Instructions

a. Assume the company uses normal-absorption costing and uses the budgeted volume of 8,000 units to allocate the fixed overhead rate rather

than the artilal nrodurtion volume nt in non unite l'he sinany ernences niodurtinn vAllma variance ta snet of in the arsonintina

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