The Variable Costing Income Statement for Bouve Company Is Seen $\begin{array} { l }\text { Sales }(6,000 \text { untits } \times \$ 35)&\$210,000\\\end{array}$

Essay

The variable costing income statement for Bouve Company is seen below:
$\begin{array} { l }\text { Sales }(6,000 \text { untits } \times \$ 35)&\$210,000\\\end{array}$

Variable expenses:
$\begin{array} { l }\text { Beginning inventory ( } 680 \text { units } \times \$ 20 \text { ) }&\$ 13,600\\\end{array}$

Variable cost of goods manufactured
$\begin{array}{ll}(6,400 \text { units } \times \$ 20) & 128,000 \\\text { Available for sale } & 141,600 \\\text { Less: Ending inventory }(1,080 \text { units } \times \$ 20) & 21,600\\\text { Variable manufacturing cost of goods sold }&120,000\\\text { Variable selling and administrative expenses }&24,000\\\text { Contribution margin }&66,000\end{array}$
Fixed expenses:
$\begin{array} { l } \text {Fixed factory overhead }&20,000 \\ \text {Fixed selling and administrative expenses }&15,300 \\ \text { Operating income}&\$30,700 \\\end{array}$

Required:
Prepare an absorption-costing income statement for the same period of time.Assume that actual fixed costs were equal to budgeted fixed costs and the budgeted fixed overhead rate was constant over the period examined.Assume the production volume variance equals zero.