The Variable Costing Income Statement for Kilem Company for This

question 33

Essay

The variable costing income statement for Kilem Company for this year is as follows:
Selected data for this year concerning the operations of the company are as follows:
Required: Prepare an absorption costing income statement for this year.
$\begin{array}{lr}\text { Beginning inventory } & -0 \text { - units } \\\text { Units produced } & 8,000 \text { units }\\\text { Manufacturing costs: } & \\\text { Direct labour } & \$ 3.00 \text { per unit } \\\text { Direct materials } & 1.40 \text { per unit } \\\text { Variable overhead } & 1.60 \text { per unit }\end{array}$

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

Oxaloacetic

Relating to oxaloacetic acid, a four-carbon molecule critical in the citric acid cycle for energy production within cells.

Acetyl-CoA

is an important molecule that plays a central role in metabolism, acting as a substrate for the citric acid cycle and fatty acid synthesis.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source for the body and include sugars, starches, and fibers.