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Dilithium Batteries 60000

Price: $2.50


Dilithium Batteries is a division of Enterprise Corporation. The division manufactures
and sells a long-life battery used in a wide variety of applications. During the coming
year, it expects to sell 60,000 units for $30 per unit. Nyota Uthura is the division manager.
She is considering producing either 60,000 or 90,000 units during the period. Other information
is presented in the schedule.

Instructions
(a) Prepare an absorption costing income statement, with one column showing the results
if 60,000 units are produced and one column showing the results if 90,000 units are produced.
(b) Prepare a variable costing income statement, with one column showing the results if 60,000
units are produced and one column showing the results if 90,000 units are produced.

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