the following data are available for scream company for the year ended december 31 2 408652

The following data are available for Scream Company for the year ended December 31, 2015:

Sales 38,000 units

Sales price $50 per unit

Actual variable manufacturing costs $1,400,000

Actual fixed manufacturing costs $228,000

Actual variable nonmanufacturing costs $76,000

Actual fixed nonmanufacturing costs $135,000

Work in process inventory, January 1, 2015 0

Finished goods inventory, January 1, 2015 0

Direct materials inventory, January 1, 2015 0

Work in process inventory, December 31, 2015 0

Direct material inventory, December 31, 2015 0

Expected production 40,000 units

Actual production 40,000 units

Required:

A) Using the variable costing approach, prepare an income statement for the year ended December 31,

2015. Assume actual fixed costs were equal to budgeted fixed costs.

B) Using the absorption costing approach, prepare an income statement for the year ended December 31,

2015. Assume actual fixed costs were equal to budgeted fixed costs.