Cost of Goods Manufactured, using Variable Costing and Absorption CostingOn December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,800 units and sold 1,500 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 $780,000 Variable cost of goods sold: Variable cost of goods manufactured$450,000 Inventory, December 31(75,000) Total variable cost of goods sold 375,000 Manufacturing margin $405,000 Total variable selling and administrative expenses 93,000 Contribution margin $312,000 Fixed costs: Fixed manufacturing costs$205,200 Fixed selling and administrative expenses63,000 Total fixed costs 268,200 Income from operations $43,800 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.Variable costing$fill in the blank 1Absorption costing$fill in the blank 2

Name: Cost of Goods Manufactured, using Variable Costing and Absorption Cost
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Description: Cost of Goods Manufactured, using Variable Costing and Absorption CostingOn December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on

Under the Variable costing method, the Unit cost of goods manufactured includes the Variable cost of…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Cost of Goods Manufactured, using Variable Costing and Absorption Costing

On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 1,800 units and sold 1,500 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		$780,000
Variable cost of goods sold:
Variable cost of goods manufactured	$450,000
Inventory, December 31	(75,000)
Total variable cost of goods sold		375,000
Manufacturing margin		$405,000
Total variable selling and administrative expenses		93,000
Contribution margin		$312,000
Fixed costs:
Fixed manufacturing costs	$205,200
Fixed selling and administrative expenses	63,000
Total fixed costs			268,200
Income from operations		$43,800

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

Variable costing	$fill in the blank 1
Absorption costing	$fill in the blank 2

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