I already asked this question, however, got the wrong answer. I need the fill in

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I already asked this question, however, got the wrong answer. I need the fill in for those boxes, I am sure of the names of the boxes, however, need the amounts highlited in blue

Canada Brewers Ltd. has just created a new division to manufacture and sell single-cup coffee makers under licence from a major single-cup coffee producer. The facility is highly automated and so has high monthly fixed costs, as shown in the following schedule of budgeted monthly costs. This schedule was prepared based on an expectation of a monthly production volume of 2,700 units During August, the following activity was recorded Units produced Units sold 2,700 2,000 $ 95 Selling price per unit Manufacturing costs Variable cost per unit Direct material Direct labour Variable overhead 16 12 $75,600 Total fixed overhead Selling and administrative costs Variable Fixed 5% of sales 12,000 Required. 1. Prepare an income statement for the month ended August 31, under absorption costing CANADA BREWERS LTD Absorption Costing Income Statement For month ended August 31 $ 190,000 Cost of goods sold inished goods, beginning inventory ost of goods manufactured ess: Finished goods, ending inventory ontribution margin 190,000 Selling and administrative costs Variable Fixed Operating loss $ 190,000

Explanation / Answer

MANUFACTURING AND DETAILS ARE AS BELOW Unit Produced = $                          2,700 Units Unit Sold = $                          2,000 Units Closing Stock $                             700 Units Selling Price Per unit $                          95.00 Per Units Variable Selling Expenses p.U $                          46.00 Per Units STEP : 1 CALCULATION OF FIXED OVERHEAD RECOVERY RATE FOR ABSORPTION COSTING Fixed Manufacturing Overhead = $                       75,600 "/ " By Units Produced = $                          2,700 Fixed overhead recovery Rate = $                          28.00 STEP : 2 CALCUALTION OF cost of production units by using absorption and variable Costing Particulars Absorption Costing Amount Direct Material Per unit $                          18.00 Direct Labour Per Unit $                          16.00 Vairable Manufacturing Overhead $                          12.00 Fixed Manufacturing Overhead $                          28.00 Cost of Production per unit $                          74.00 STEP 3: Income statement as per Absorption Costing ABOSRPTION COSTING INCOME STATEMENTS Absorption Costing Particulars Amount Sales (2,000 Units X 95Per Units) $                    1,90,000 Cost of Goods Sold Beginning inventory $                                 -   Cost of Goods Manufactured (2,700 Units X $ 74.00 Per unit) $                    1,99,800 Less: Ending Inventory (700 units $ 74 Per Unit) $                       51,800 Cost of Goods Sold $                    1,48,000 Contribution margin $                       42,000 Less : Selling Expenses Fixed Selling Expenses $                       12,000 Variable Selling Expenses($190,000 X 5%) $                          9,500 Net Income $                       20,500

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