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 below.
(a.) Prepare 32 Degree's December 31^st income statement for the current year under absorption costing.
(b.) Prepare 32 Degree's December 31^st income statement for the current year under variable costing.