During a recent period, Pickeral Company produced 15,000 units and sold 10,000 at $15 each. The company had no beginning inventory. During this period Pickeral incurred the following costs:
Direct materials $60,000
Direct labour 30,000
Fixed overhead 22,500
Variable overhead 15,000
Fixed selling & administrative 30,000
Variable selling & administrative 11,250
a)Prepare an income statement using absorption costing.
b)Prepare an income statement using variable costing.
c)Prepare an income statement using throughput costing.

Question

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The Answer of During a recent period, Pickeral Company produced 15,000 units and sold 10,000 at $15 each. The company had no beginning inventory. During this period Pickeral incurred the following costs:
Direct materials $60,000
Direct labour 30,000
Fixed overhead 22,500
Variable overhead 15,000
Fixed selling & administrative 30,000
Variable selling & administrative 11,250
a)Prepare an income statement using absorption costing.
b)Prepare an income statement using variable costing.
c)Prepare an income statement using throughput costing.

During a Recent Period, Pickeral Company Produced 15,000 Units and Sold