32 Degrees,Inc APrepare 32 Degree's December 31 Income Statement for the Current

question 2

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 in the following table:
$$\begin{array}{l}\text { Production costs }\\\begin{array} { l l } \text { Direct materials } & \$ 13.00 \text { per unit } \\\text { Direct labor } & \$ 6.00 \text { per unit } \\\text { Variable overhead } & \$ 2,100,000 \text { in total } \\\text { Fixed overhead } & \$ 3,220,000 \mathrm { in } \text { total } \\\text { Nonproduction costs } & \\\text { Variable selling ard administrative } & \$ 91,000 \mathrm { in } \text { total } \\\text { Fixed selling arnd administrative } & \$ 458,000 \mathrm { in } \text { total }\end{array}\end{array}$$
a.Prepare 32 Degree's December 31 income statement for the current year under absorption costing.
b.Prepare 32 Degree's December 31 income statement for the current year under variable costing.

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Definitions:

PepsiCo

A global food and beverage leader known for various brands including Pepsi, Lay's, Doritos, and Mountain Dew.

Business Sense

An innate understanding of what is needed for an organization to make money, including market awareness, competition analysis, and financial acumen.

Diversity Competency

The ability to interact effectively with people from different cultures, ethnicities, ages, genders, religions, lifestyles, and other diversity dimensions.

Organizational Strength

The capacity of an organization to utilize its resources effectively to achieve its objectives.