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Diaz Company reports the following variable costing income statement for its only product. Sales total...

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Accounting

Diaz Company reports the following variable costing income statement for its only product. Sales total 46,000 units, but production was 76,000 units. Diaz had no beginning finished goods inventory.

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Prepare an absorption costing income statement.

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\begin{tabular}{|c|c|c|} \hline DIAZCOMPANYIncomeStatement(Variablecosting) & & \\ \hline Sales (46,000 units $56.00 per unit ) & & $2,576,000 \\ \hline Variable expenses & & \\ \hline Variable cost of goods sold (46,000 units $27.60 per unit) & $1,269,600 & \\ \hline Variable selling and administrative expenses (46,000 units $4.60 per unit) & 211,600 & 1,481,200 \\ \hline Contribution margin & & 1,094,800 \\ \hline Fixed expenses & & \\ \hline Fixed overhead & 273,600 & \\ \hline Fixed selling and administrative expense & 136,800 & 410,400 \\ \hline Income & & $684,400 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ DIAZ COMPANY } \\ \hline Income Statement (Absorption Costing) \\ \hline \end{tabular}

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