The following data are from the accounting records of Niles Castings for year 2.           Units produced and sold   85,000   Total revenues and costs       Sales revenue $ 350,000   Direct materials costs   60,000   Direct labor costs   35,000   Variable manufacturing overhead   12,000   Fixed manufacturing overhead   49,000   Variable marketing and administrative costs   15,500   Fixed marketing and administrative costs   30,000     Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data are from the accounting records of Niles Castings for year 2.

 

       
Units produced and sold   85,000  
Total revenues and costs      
Sales revenue $ 350,000  
Direct materials costs   60,000  
Direct labor costs   35,000  
Variable manufacturing overhead   12,000  
Fixed manufacturing overhead   49,000  
Variable marketing and administrative costs   15,500  
Fixed marketing and administrative costs   30,000  
 


Required:

a. Prepare a gross margin income statement.

b. Prepare a contribution margin income statement.

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