The Variable Costing Income Statement for Kilem Company for This

Essay

The variable costing income statement for Kilem Company for this year is as follows:
Selected data for this year concerning the operations of the company are as follows:
Required: Prepare an absorption costing income statement for this year.
$\begin{array}{lr}\text { Beginning inventory } & -0 \text { - units } \\\text { Units produced } & 8,000 \text { units }\\\text { Manufacturing costs: } & \\\text { Direct labour } & \$ 3.00 \text { per unit } \\\text { Direct materials } & 1.40 \text { per unit } \\\text { Variable overhead } & 1.60 \text { per unit }\end{array}$