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The following information relates to Vice Versa Ventures for calendar year 20XX, the company’s first year of operations:
Units produced 20,000
Units sold 15,000
Selling price per unit $30
Direct material per unit $5
Direct labor per unit $5
Variable manufacturing overhead per unit $2
Variable selling cost per unit $3
Annual fixed manufacturing overhead $160,000
Annual fixed selling and administrative expense $80,000
a. Prepare an income statement using full costing.
b. Prepare an income statement using variable costing.
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