AGA company manufactures and sells a product for $20/Kg. The data for the last year is given below:

Sales 75,000 Kg
Finished goods inventory at the beginning of the period 12,000 Kg
Finished goods inventory at the closing of the period 17,000 Kg

Manufacturing costs:
Variable cost $8 per Kg
Fixed manufacturing overhead cost $320,000 per year
Marketing and administrative expenses:
Variable expenses $2 per Kg of sale
Fixed expenses $300,000 per year

Preparing Income Statements Using Variable Costing