Question & Answer: 35 tes Trez Company began operaons thas year During thes first year, the company produced 100000 unts and sold 80,000 units. The absorption costi…..

35 tes Trez Company began operaons thas year During thes first year, the company produced 100000 unts and sold 80,000 units. The absorption costing Income statement for this year follows. 2 points Sales (88,800 units $48 per unit) Cost of goods sold 3,288,88 Beginning inventory Cost of goods manufactured (10e,ee0 units s2e per unit) cost of good available for sale Ending inventory (26,88 $20) Cost of goods sold 2,800,8ee 2,880,800 48e,eee eBook Gross margin Selling and administrative expenses Net income 546,808 $1,e6e,888 Print erenceAdditionel Informetion a. Selling and administrative expenses consist of $400,000 in annual fixed e xpenses and $175 per unlt in variable selling and administrative expenses b. The company’s product cost of $20 per unit is computed as follows. Direct materials Direct labor variable overhead Fixed overhead ($78e,e8 / 1ee,838 ünits) s4 per unit s 6 per unit s per unst S7 per unit Requlred: 1. Prepare an income statement for the company under variable costing