Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,900 units and sold 1,600 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $608,000 Variable cost of goods sold: Variable cost of goods manufactured $345,800 Inventory, December 31 (54,600) Total variable cost of goods sold 291,200 Manufacturing margin $316,800 Total variable selling and administrative expenses 73,600 Contribution margin $243,200 Fixed costs: Fixed manufacturing costs $159,600 Fixed selling and administrative expenses 48,000 Total fixed costs 207,600 Income from operations $35,600 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $fill in the blank 1 Absorption costing $fill in the blank 2
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,900 units and sold 1,600 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $608,000 Variable cost of goods sold: Variable cost of goods manufactured $345,800 Inventory, December 31 (54,600) Total variable cost of goods sold 291,200 Manufacturing margin $316,800 Total variable selling and administrative expenses 73,600 Contribution margin $243,200 Fixed costs: Fixed manufacturing costs $159,600 Fixed selling and administrative expenses 48,000 Total fixed costs 207,600 Income from operations $35,600 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $fill in the blank 1 Absorption costing $fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cost of Goods Manufactured, using Variable Costing and Absorption Costing
On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,900 units and sold 1,600 units. The following income statement was prepared, based on the variable costing concept:
| Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 |
||||
| Sales | $608,000 | |||
| Variable cost of goods sold: | ||||
| Variable cost of goods manufactured | $345,800 | |||
| Inventory, December 31 | (54,600) | |||
| Total variable cost of goods sold | 291,200 | |||
| Manufacturing margin | $316,800 | |||
| Total variable selling and administrative expenses | 73,600 | |||
| Contribution margin | $243,200 | |||
| Fixed costs: | ||||
| Fixed manufacturing costs | $159,600 | |||
| Fixed selling and administrative expenses | 48,000 | |||
| Total fixed costs | 207,600 | |||
| Income from operations | $35,600 |
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
| Variable costing | $fill in the blank 1 |
| Absorption costing | $fill in the blank 2 |
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