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Exercise 19-9(Algo) Absorption costing and variable costing income statements LO P2 Rey Companys...

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Accounting

Exercise 19-9(Algo) Absorption costing and variable costing income statements LO P2
Rey Companys only product sells for $235 per unit. Data for its first year of operations follow.
Direct materials $ 39 per unit
Direct labor $ 47 per unit
Variable overhead $ 5 per unit
Fixed overhead $ 168,000 per year
Variable selling and administrative expenses $ 37 per unit
Fixed selling and administrative expenses $ 238,000 per year
Units produced and sold 24,000 units
1. Prepare an income statement for the year using absorption costing
2. Prepare an income statement for the year using variable costing.

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