Sivan Co. manufactures and sells one product
January 12th, 2018
Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory; produced 100,000 units, but only sold 70,000 units. The selling price per each unit is $60.The variable costs per unit were:Direct materials…………………….7Direct Labor ………………………..6Variable manufacturing overhead ….5Variable selling and administrative…6Fixed costs per year:Fixed manufacturing Overhead …………….$700,000Fixed Selling and Administrative expenses.. $300,000(a) Prepare the Income Statement using Absorption Costing.(b) Prepare the Income Statement using Variable Costing