Wrap-It Company, a Manufacturer of Wrapping Paper, Began Operations on June

Essay

Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year. During this time, the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. Cost information for this period is shown in the following table:
Variable selling and administrative
$78,000 in total
Fixed selling and administrative
$210,000 in total
a. Prepare Wrap-It's December 31^st income statement for the current year under absorption costing.
b. Prepare Wrap-It's December 31^st income statement for the current year under variable costing.