1. What is Beginning inventory: Absorption-costing basis? 2. What is Gross margin? 3. What is Operating income: Absorption-costing basis? 4. What is Beginning inventory: Variable-costing basis? 5. What is Contribution margin? 6. What is Operating income: Variable-costing basis?
Smith Company has the following results for a certain year. All variances are written off as additions to (or deductions from) the
Sales: 150,000 units, at $20 $3,000,000
Net variance for standard variable
Variable standard cost of goods manufactured $ 11 per unit
Variable selling and administrative expenses $ 3 per unit
Fixed selling and administrative expenses $ 650,000
Fixed manufacturing
Maximum capacity per year 190,000 units
Expected production volume for year 150,000 units
Beginning inventory of finished goods 15,000 units
Ending inventory of finished goods 10,000 units
1. What is Beginning inventory: Absorption-costing basis?
2. What is Gross margin?
3. What is Operating income: Absorption-costing basis?
4. What is Beginning inventory: Variable-costing basis?
5. What is Contribution margin?
6. What is Operating income: Variable-costing basis?
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