Aspen Manufacturing Company Sells Its Products for $33 Each Required:
A

Aspen Manufacturing Company sells its products for $33 each.The current production level is 50,000 units,although only 40,000 units are anticipated to be sold.
Unit manufacturing costs are:
$$\begin{array} { l l } \text { Direct materials } & \$ 6.00 \\\text { Direct manufacturing labor } & \$ 9.00 \\\text { Variable manufacturing costs } & \$ 4.50 \\\text { Total fixed manufacturing costs } & \$ 180,000 \\\text { Marketing expenses } & \$ 3.00 \text { per unit, plus } \$ 100,000 \text { per year }\end{array}$$
Required:
a.Prepare an income statement using absorption costing.
b.Prepare an income statement using variable costing.