The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units.

Beginning Inventory: 0 Umbrellas

Production: 80,000 Umbrellas

Sales: 60,000 Umbrellas

Ending Inventory: 20,000 Umbrellas

Using the information provided above and the costs and sales information provided in Section I, complete the following in the Hampshire Company Spreadsheet in order to assist you in responding to all components of Section II:

Prepare a variable costing income statement.

Prepare an absorption costing income statement.

Additionally, complete Parts A through E of Section II as outlined in the Final Project Guidelines and Rubric document.

Requirement 1
Hampshire Company
Variable Costing Income Statement
	Units	$
Sales	X	$				$
Variable Cost of Goods Sold:
Beginning Inventory					$
Direct Materials	X	$			$
Direct Labor	X	$			$
Manufacturing Overhead	X	$			$
Total Variable Costs					$
Cost of Good Available for Sale					$
Deduct Ending Inventory	X	$			$
Variable Costs of Goods Sold						$
Variable Selling Costs	X	$			$	$
Contribution Margin						$
Fixed Costs:
Fixed Manufacturing Costs						$
Fixed Administrative Costs						$
Operating Income						$
Requirement 2
Hampshire Company
Absorption Costing Income Statement
	Units	$
Sales	X	$				$
Variable Cost of Goods Sold:
Beginning Inventory					$
Direct Materials	X	$			$
Direct Labor	X	$			$
Manufacturing Overhead	X	$			$
Total Variable Costs					$
Allocated Fixed Manufacturing Costs	X	$			$
Cost of Good Available for Sale					$
Deduct Ending Inventory	X	$			$
Costs of Goods Sold						$
Gross Margin						$
Fixed Costs:
Variable Selling Costs	X	$				$
Fixed Administrative Costs						$
Operating Income						$