Number of units produced 3,000Number of units sold 2,500Unit sales price$350Direct materials per unit 80Direct labor per unit 60Variable manufacturing overhead per unit 10Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units) 75Total variable selling expenses ($15 per unit sold) 37,500Total fixed general and administrative expenses 65,000Im confused on how i would make a full absorption income statement with the information above.

Absorption Costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Answered: Number of units produced 3,000…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Number of units produced		3,000
Number of units sold		2,500
Unit sales price	$	350
Direct materials per unit		80
Direct labor per unit		60
Variable manufacturing overhead per unit		10
Fixed manufacturing overhead per unit ($225,000 ÷ 3,000 units)		75
Total variable selling expenses ($15 per unit sold)		37,500
Total fixed general and administrative expenses		65,000

Im confused on how i would make a full absorption income statement with the information above.

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