Zayed Company prepared the following absorption-costing income statement for the year ended May 31, 2014.

Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a variable-costing income statement for the same period.

Question

Zayed Company prepared the following absorption-costing income statement for the year ended May 31, 2014.

Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a variable-costing income statement for the same period.

Quizplus · Accepted Answer

The Answer of Zayed Company prepared the following absorption-costing income statement for the year ended May 31, 2014.

Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a variable-costing income statement for the same period.

Zayed Company Prepared the Following Absorption-Costing Income Statement for the Year