| AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000 of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,000 of fixed selling and administrative costs and $13,000 of variable selling and administrative costs. The company sold all of the units it produced for $160,000. |
| Required |
| a. | Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).
|
