Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 3,800 units and sold 3,300 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   $1,683,000    Variable cost of goods sold:     Variable cost of goods manufactured $931,000      Inventory, March 31 (122,500)     Total variable cost of goods sold   (808,500)   Manufacturing margin   $874,500    Total variable selling and administrative expenses   (201,300)   Contribution margin   $673,200    Fixed costs:     Fixed manufacturing costs $425,600      Fixed selling and administrative expenses 135,300        Total fixed costs     (560,900)   Operating income   $112,300    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

The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available:   Variable Fixed Unit manufacturing costs of the period $12.00  $5.00  Unit operating expenses of the period 4.00  4.00  The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase

Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30 Sales (6,600 units)   $178,200    Cost of goods sold:     Cost of goods manufactured (7,700 units) $146,300      Inventory, April 30 (1,100 units) (20,900)     Total cost of goods sold   (125,400)   Gross profit   $52,800    Selling and administrative expenses   (32,280)   Operating income   $20,520    If the fixed manufacturing costs were $39,501 and the fixed selling and administrative expenses were $15,810, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30     $Sales Variable cost of goods sold:       $Variable cost of goods manufactured…

Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Sales Cost of goods sold Gross profit Selling and administrative expenses Operating income (loss) Rhinebeck Company Revenues. Costs: Product-Line Income Statement For the Month Ended October 31 Fixed costs Variable cost of goods sold Variable selling and admin. expenses Profit (Loss) Hats Fixed costs are 15% of the cost of goods sold and 42% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. $65,200 (27,000) $38,200 (28,500) $9,700 Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers…

On October 31, the end of the first month of operations, Maryville Equipment Company pre- pared the following income statement, based on the variable costing concept: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units).... $ 7,920,000 Variable cost of goods sold: Variable cost of goods manufactured . Inventory, October 31 (45,000 units) .. Total variable cost of goods sold... Manufacturing margin....... Variable selling and administrative expenses $ 6,360,000 (1,080,000) (5,280,000) $ 2,640,000 (330,000) $ 2,310,000 Contribution margin... Fixed costs: Fixed manufacturing costs ... Fixed selling and administrative expenses.. $ 530,000 100,000 Total fixed costs.... (630,000) $ 1,680,000 Operating income... Prepare an income statement under absorption costing.

2. On February 28, the end of the first month of operations, Kibitz Computer Technology prepared the following income statement, based on the variable costing concept: Kibitz Computer Technology Variable Costing Income Statement For the Month Ended February 28 Sales (250,000 units) 2$ 67,000,000 Variable cost of goods sold: Variable cost of goods manufactured $ 46,000,000 Inventory, February 28 (5,500,000) Total variable cost of goods sold 40,500,000 Manufacturing margin 2$ 26,500,000 Total variable selling and admin. expenses 2,400,000 Contribution margin 2$ 24,100,000 Fixed Costs Fixed manufacturing costs $ 8,500,000 Fixed selling and admin. Expenses 375,000 Total fixed costs 8,875,000 Income from operations 15,225,000 Prepare an income statement under absorption costing.

The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00

Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc.Absorption Costing Income StatementFor the Year Ended December 31 Sales   $1,200,000  Cost of goods sold:       Cost of goods manufactured $840,000      Ending inventory (168,000)       Total cost of goods sold   (672,000) Gross profit   $528,000  Selling and administrative expenses   (289,000) Operating income   $239,000  Variable Statement Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin. Saxon, Inc.Variable Costing Income StatementFor the Year Ended December 31 Sales   $1,200,000  Variable cost of goods sold:       Variable cost of goods manufactured $600,000      Ending inventory (120,000)       Total variable cost of goods sold   (480,000) Manufacturing…

Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc.Absorption Costing Income StatementFor the Year Ended December 31 Sales   $1,200,000  Cost of goods sold:       Cost of goods manufactured $840,000      Ending inventory (210,000)       Total cost of goods sold   (630,000) Gross profit   $570,000  Selling and administrative expenses   (290,000) Operating income   $280,000  Variable Statement Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin. Saxon, Inc.Variable Costing Income StatementFor the Year Ended December 31 Sales   $1,200,000  Variable cost of goods sold:       Variable cost of goods manufactured $600,000      Ending inventory (150,000)       Total variable cost of goods sold   (450,000) Manufacturing margin   $750,000…

Subject: acounting