Megredy Company Prepared the Following Absorption Costing Income Statement for the Year

Essay

Megredy Company prepared the following absorption costing income statement for the year ended May 31, 2016.

Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 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.