Cost of Goods Manufactured, using Variable Costing and Absorption Costing On October 31, the end of the first month of operations, Yankovich Inc. manufactured 75,000 units and sold 67,500 units. The following income statement was prepared, based on the variable costing concept: Yankovich Inc. Variable Costing Income Statement For the Month Ended October 31 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: $9,000,000 (900,000) $600,000 140,000 $14,600,000 (8,100,000) $6,500,000 (1,460,000) $5,040,000 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. (a) Variable costing $ (b) Absorption costing $ (740,000) $4,300,000
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On October 31, the end of the first month of operations, Yankovich Inc. manufactured 75,000 units and sold 67,500 units. The following income statement was prepared, based on the variable costing concept: Yankovich Inc. Variable Costing Income Statement For the Month Ended October 31 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: $9,000,000 (900,000) $600,000 140,000 $14,600,000 (8,100,000) $6,500,000 (1,460,000) $5,040,000 Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. (a) Variable costing $ (b) Absorption costing $ (740,000) $4,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Cost of Goods Manufactured, using Variable Costing and Absorption Costing
On October 31, the end of the first month of operations, Yankovich Inc. manufactured 75,000 units and sold
67,500 units. The following income statement was prepared, based on the variable costing concept:
Yankovich Inc.
Variable Costing Income Statement
For the Month Ended October 31
Sales
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, October 31
Total variable cost of goods sold
Manufacturing margin
Total variable selling and administrative expenses
Contribution margin
Fixed costs:
Fixed manufacturing costs
Fixed selling and administrative expenses
Total fixed costs
$9,000,000
(900,000)
$600,000
140,000
$14,600,000
(8,100,000)
$6,500,000
(1,460,000)
$5,040,000
(740,000)
$4,300,000
Operating income
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption
costing concept.
(a) Variable costing $
(b) Absorption costing $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff424b-0e96-4e90-b1d6-dc40303839e0%2F726c54e3-0a14-405a-9b9d-6830ddcdb87d%2Ff1xi0w6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost of Goods Manufactured, using Variable Costing and Absorption Costing
On October 31, the end of the first month of operations, Yankovich Inc. manufactured 75,000 units and sold
67,500 units. The following income statement was prepared, based on the variable costing concept:
Yankovich Inc.
Variable Costing Income Statement
For the Month Ended October 31
Sales
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, October 31
Total variable cost of goods sold
Manufacturing margin
Total variable selling and administrative expenses
Contribution margin
Fixed costs:
Fixed manufacturing costs
Fixed selling and administrative expenses
Total fixed costs
$9,000,000
(900,000)
$600,000
140,000
$14,600,000
(8,100,000)
$6,500,000
(1,460,000)
$5,040,000
(740,000)
$4,300,000
Operating income
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption
costing concept.
(a) Variable costing $
(b) Absorption costing $
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