Tech Helpers Company prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Tech Helpers provides a personal computer maintenance service that is sold for $100. The variable and fixed cost data are as follows:

Direct labor				$25.00
Overhead
Variable cost per unit				$5.00
Fixed cost (annual)				$240,000
Marketing, general and administrative
Variable cost (per service contract completed)				$5.00
Fixed cost (annual cost)				$20,000

During 2019, 4,500 service contracts were started and 5,000 service contracts were completed. At the beginning of 2019, Tech Helpers had 500 service contracts in process at a per-unit cost of $90 in beginning work-in-process inventory.

a. Calculate reported income for management. Do not use negative signs with any answers.

Absorption Costing Income Statement
Sales				Answer
Cost of Goods Sold:
Beginning Inventory			Answer
Variable Costs			Answer
Fixed Costs			Answer
Less: Ending Inventory			Answer
Cost of Goods Sold				Answer
AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost				Answer
AnswerContribution marginGross profitLess: Ending inventorySelling expenseOverhead cost				Answer
Administrative expense				Answer
Net Income				Answer

b. Calculate reported income for the bank. Do not use negative signs with any answers.

Variable Costing Income Statement
Sales				Answer
Cost of Goods Sold:
Beginning Inventory			Answer
Variable Costs			Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense			Answer
Variable cost of goods sold				Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariable selling expense				Answer
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense				Answer
Fixed costs:
AnswerContribution marginGross profitLess: Ending inventoryOverhead costVariableselling expense			Answer
Administrative Expense			Answer
Total Fixed Cost				Answer
Net Income				Answer