On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 3,900 units and sold 3,400 units. The following income statement was prepared, based on the variable costing concept:Frankenreiter Inc.Variable Costing Income StatementFor the Year Ended December 31, 20Y1Sales $1,394,000 Variable cost of goods sold: Variable cost of goods manufactured$768,300 Inventory, December 31(98,500) Total variable cost of goods sold 669,800 Manufacturing margin $724,200 Total variable selling and administrative expenses 166,600 Contribution margin $557,600 Fixed costs: Fixed manufacturing costs$351,000 Fixed selling and administrative expenses112,200 Total fixed costs 463,200 Income from operations $94,400 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.Variable costing$Absorption costing$

Variable costing refers to the concept which assigns the cost to inventory. Absorption costing…

Answered: unit cost of goods manufactured,

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 December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 3,900 units and sold 3,400 units. The following income statement was prepared, based on the variable costing concept:

Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1
Sales		$1,394,000
Variable cost of goods sold:
Variable cost of goods manufactured	$768,300
Inventory, December 31	(98,500)
Total variable cost of goods sold		669,800
Manufacturing margin		$724,200
Total variable selling and administrative expenses		166,600
Contribution margin		$557,600
Fixed costs:
Fixed manufacturing costs	$351,000
Fixed selling and administrative expenses	112,200
Total fixed costs			463,200
Income from operations		$94,400

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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