(Answered) Problem - vernon inc manufactures and sells one product

Accounting

Problem - Vernon Inc. manufactures and sells one product. Sales and production information is contained below.

Selling price per unit $50
Variable manufacturing costs per unit produced (DM, DL, and variable MOH) $24
Variable operating expenses per unit sold $5
Fixed manufacturing overhead (MOH) in total for the year $135,000
Fixed operating expenses in total for the year $55,000
Units produced during the year 15,000
Units sold during the year 13,000

(a) Prepare the income statement using variable costing.

(b) Prepare the income statement using absorption costing.

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