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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education