Using the information presented in E10-1, prepare a comparative income statements for March (a) under absorption costing and (b) under variable costing.
The following data came from the records for March:
Direct materials................................... $200,000
Direct labor......................................... $100,000
Variable factory overhead.................... $80,000
Fixed factory overhead.........................$60,000
Selling and administrative expenese.....$40,000
Units produced.......................................25,000
Units sold...............................................20,000
Selling price per unit...................................$25
There were no beginning inventories and no ending work in process inventory.