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
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
Chapter1: Financial Statements And Business Decisions
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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 |
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