Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,700 units and sold 1,500 units. The following income statement was prepared based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $720,000 Variable cost of goods sold: Variable cost of goods manufactured $391,000 Inventory, March 31 (46,000) Total variable cost of goods sold (345,000) Manufacturing margin $375,000 Total variable selling and administrative expenses (87,000) Contribution margin $288,000 Fixed costs: Fixed manufacturing costs $180,200
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,700 units and sold 1,500 units. The following income statement was prepared based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $720,000 Variable cost of goods sold: Variable cost of goods manufactured $391,000 Inventory, March 31 (46,000) Total variable cost of goods sold (345,000) Manufacturing margin $375,000 Total variable selling and administrative expenses (87,000) Contribution margin $288,000 Fixed costs: Fixed manufacturing costs $180,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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