Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing.Annual productionSales priceVariable production cost per unitDirect materials50,000 units$40 per unit$103Direct labor$25 per unitManufacturing overheadFixed production costs12.$150,000 each year; $3 perunit at 50,000 units ofproductionVariable selling andadministrative cost$1 per unitFixed selling andadministrative cost$100,000 each yearSales:А.Var. ProductionВ.Var Selling & Admin50,0001,300,000Contribution MarginС.Fixed Expenses:Fixed Mfg Overhead150,000Fixed Selling & Admin100,000250,000Net IncomeD.

Answer) Contribution Margin Income Statement Amount Amount Sales $…

Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing. Annual production Sales price Variable production cost per unit Direct materials 50,000 units $40 per unit $10 3. Direct labor $25 per unit 12 $150,000 each year; S3 per unit at 50,000 units of production Manufacturing overhead Fixed production costs Variable selling and administrative cost Fixed selling and administrative cost $1 per unit $100,000 each year

Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing. Annual production Sales price Variable production cost per unit Direct materials 50,000 units $40 per unit $10 3. Direct labor $25 per unit 12 $150,000 each year; S3 per unit at 50,000 units of production Manufacturing overhead Fixed production costs Variable selling and administrative cost Fixed selling and administrative cost $1 per unit $100,000 each year

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Based on the following information, prepare a contribution margin income statement assuming the company uses variable costing.
Annual production
Sales price
Variable production cost per unit
Direct materials
50,000 units
$40 per unit
$10
3
Direct labor
$25 per unit
Manufacturing overhead
Fixed production costs
12.
$150,000 each year; $3 per
unit at 50,000 units of
production
Variable selling and
administrative cost
$1 per unit
Fixed selling and
administrative cost
$100,000 each year
Sales:
А.
Var. Production
В.
Var Selling & Admin
50,000
1,300,000
Contribution Margin
С.
Fixed Expenses:
Fixed Mfg Overhead
150,000
Fixed Selling & Admin
100,000
250,000
Net Income
D.

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