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VERONA MANUFACTURING COMPANY Verona Company has started to produce a cutting equipment on January...

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Accounting

VERONA MANUFACTURING COMPANY
Verona Company has started to produce a cutting equipment on January 1,2021. During January and February, the company produced 12,000 units in each month. At this production level, the unit costs were as follows; Direct Material $250, Direct Labor $312.50, Variable MOH $62.50, Fixed MOH $125. Variable marketing expenses for January was $87,500, fixed marketing expenses per month was $375,000. Variable general administrative expenses for January was $50,000, fixed general administrative expenses per month was $625,000. There was no WIP inventory for both months. During January, 10,000 units and during February 13,000 units were sold. Unit selling price was $1,100.
Question) Prepare the Income Statements for both months under Absorption and Variable Costing
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