On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,200 units and sold 2,800 units. The following income statement was prepared, based on the variable costing concept:Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1Sales $560,000 Variable cost of goods sold: Variable cost of goods manufactured$307,200 Inventory, March 31(38,400) Total variable cost of goods sold (268,800) Manufacturing margin $291,200 Total variable selling and administrative expenses (67,200) Contribution margin $224,000 Fixed costs: Fixed manufacturing costs$140,800 Fixed selling and administrative expenses44,800 Total fixed costs (185,600) Operating income $38,400 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.Variable costing$Absorption costing$

Cost of goods sold per unit: Formulas;

Answered: On March 31, the end of the first year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,200 units and sold 2,800 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		$560,000
Variable cost of goods sold:
Variable cost of goods manufactured	$307,200
Inventory, March 31	(38,400)
Total variable cost of goods sold		(268,800)
Manufacturing margin		$291,200
Total variable selling and administrative expenses		(67,200)
Contribution margin		$224,000
Fixed costs:
Fixed manufacturing costs	$140,800
Fixed selling and administrative expenses	44,800
Total fixed costs			(185,600)
Operating income		$38,400

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Variable costing	$
Absorption costing	$

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