Problem

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.

Variable Costs per Unit
Direct materials $8.10
Direct labor $3.73
Variable manufacturing overhead $6.26
Variable selling and administrative expenses $4.21
Fixed Costs per Year
Fixed manufacturing overhead $253,800
Fixed selling and administrative expenses $226,908

Siren Company sells the fishing lures for $27.00. During 2017, the company sold 80,000 lures and produced 94,000 lures.

Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)