32 Degrees,Inc

Essay

32 Degrees,Inc.,a manufacturer of frozen food,began operations on July 1 of the current year.During this time,the company produced 140,000 units and sold 140,000 units at a sales price of $125 per unit.Cost information for this period is shown in the following table:
a.Prepare 32 Degree's December 31st income statement for the current year under absorption costing.
b.Prepare 32 Degree's December 31st income statement for the current year under variable costing.