On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,600 units and sold 3,100 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 $1,209,000 Variable cost of goods sold: Variable cost of goods manufactured $673,200 Inventory, March 31 (93,500) Total variable cost of goods sold (579,700) Manufacturing margin $629,300 Total variable selling and administrative expenses (145,700) Contribution margin $483,600 Fixed costs: Fixed manufacturing costs $309,600 Fixed selling and administrative expenses 96,100 Total fixed costs (405,700) Operating income $77,900 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing %$4 Absorption costing %$4

On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,600 units and sold 3,100 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 $1,209,000 Variable cost of goods sold: Variable cost of goods manufactured $673,200 Inventory, March 31 (93,500) Total variable cost of goods sold (579,700) Manufacturing margin $629,300 Total variable selling and administrative expenses (145,700) Contribution margin $483,600 Fixed costs: Fixed manufacturing costs $309,600 Fixed selling and administrative expenses 96,100 Total fixed costs (405,700) Operating income $77,900 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing %$4 Absorption costing %$4

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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