. Prepare income statements using variable costing and absorption costing with no change in inventory levels.

Daltons Products manufactures a single product. Cost, sales, and production information for the company and its single product is as follows:

Selling price per unit is $65

Variable manufacturing costs per unit manufactured (includes direct materials [DM], direct labor [DL], and variable MOH) $31

Variable operating expenses per unit sold $2

Fixed manufacturing overhead (MOH) in total for the year $208,000

Fixed operating expenses in total for the year $89,000

Units manufactured and sold for the year 13,000 units

Requirements:

Prepare an income statement for the upcoming year using variable costing. Prepare an income statement for the upcoming year using absorption costing.