Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 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 $480,000 Variable cost of goods sold: Variable cost of goods manufactured $277,200 Inventory, March 31 (46,200) Total variable cost of goods sold (231,000) Manufacturing margin $249,000 Total variable selling and administrative expenses (57,000) Contribution margin $192,000 Fixed costs: Fixed manufacturing costs $126,000 Fixed selling and administrative expenses 39,000 Total fixed costs (165,000) Operating income $27,000 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 March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 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 $480,000 Variable cost of goods sold: Variable cost of goods manufactured $277,200 Inventory, March 31 (46,200) Total variable cost of goods sold (231,000) Manufacturing margin $249,000 Total variable selling and administrative expenses (57,000) Contribution margin $192,000 Fixed costs: Fixed manufacturing costs $126,000 Fixed selling and administrative expenses 39,000 Total fixed costs (165,000) Operating income $27,000 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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...
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Cost of Goods Manufactured, using Variable Costing and Absorption Costing
On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 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 | $480,000 | |||
Variable cost of goods sold: | ||||
Variable cost of goods manufactured | $277,200 | |||
Inventory, March 31 | (46,200) | |||
Total variable cost of goods sold | (231,000) | |||
Manufacturing margin | $249,000 | |||
Total variable selling and administrative expenses | (57,000) | |||
Contribution margin | $192,000 | |||
Fixed costs: | ||||
Fixed manufacturing costs | $126,000 | |||
Fixed selling and administrative expenses | 39,000 | |||
Total fixed costs | (165,000) | |||
Operating income | $27,000 |
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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