Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2012 are as follows:
Units produced ............................................................. 20,000 pairs
Units sold ................................................................... 18,000 pairs
Selling price ............................................................... $200 per pair
Production information:
Direct materials .............................................................. $1,000,000
Direct labour ..................................................................... 750,000
Variable manufacturing overhead ............................................. 450,000
Fixed manufacturing overhead ................................................ 800,000
Variable marketing costs ....................................................... 180,000
Fixed marketing costs ........................................................... 200,000
There was no beginning finished goods inventory.
Instructions
(a) Prepare an absorption-costing income statement.
(b) Prepare a variable-costing income statement.
(c) Reconcile the net incomes under absorption costing and variable costing.
(d) Calculate the break-even point in sales units (pairs of skates) under the current cost structure.
(e) Prepare a throughput-costing income statement.
(f) Reconcile the net incomes under throughput costing and variable costing?