(TCO D) Hanks Company produces a single product Operating data for the company and its...
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(TCO D) Hanks Company produces a single product Operating data for the company and its absorption costing income statement for the last year is presented below Units in beginning inventory Units produced. Units sold. 9,000 8,000 $80,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured.... Goods available for sale Less ending inventory Cost of goods sold... Gross margin Less selling and admin expenses . 54,000 54.000 ...6,000 48,000 32,000 28,000 Net operating income .$4.000 Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead totals $18,000 for the year. The fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were S1 per unit sold Required Prepare a new income statement for the year using variable costing between the absorption costing and the variable costing income statements nt on the differences
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