During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement based on the variable costing concept:Olympic Inc.Variable Costing Income StatementFor Year Ended August 31Sales $297,000 Variable cost of goods sold: Variable cost of goods manufactured $288,000 Ending inventory (72,000) Total variable cost of goods sold (216,000)Manufacturing margin $81,000 Variable selling and administrative expenses (40,500)Contribution margin $40,500 Fixed costs: Fixed manufacturing costs $12,000 Fixed selling and administrative expenses 10,800 Total fixed costs (22,800)Operating income $17,700 i need to determine the unit cost of goods manufactured based on the variable costing concept.and i need to determine the unit cost of goods manufactured based on the absorption costing concept.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepared the following income statement based on the variable costing concept:

Olympic Inc. Variable Costing Income Statement For Year Ended August 31
Sales		$297,000
Variable cost of goods sold:
Variable cost of goods manufactured	$288,000
Ending inventory	(72,000)
Total variable cost of goods sold		(216,000)
Manufacturing margin		$81,000
Variable selling and administrative expenses		(40,500)
Contribution margin		$40,500
Fixed costs:
Fixed manufacturing costs	$12,000
Fixed selling and administrative expenses	10,800
Total fixed costs		(22,800)
Operating income		$17,700

i need to determine the unit cost of goods manufactured based on the variable costing concept.

and i need to determine the unit cost of goods manufactured based on the absorption costing concept.

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