April 30, 2015. 17,000 units were manufactured and sold during the accounting pe

Question

April 30, 2015. 17,000 units were manufactured and sold during the accounting period at a price of $60 per unit.

There was no beginning inventories and all units were completed (no work in process).

Required:         Prepare a contribution margin income statement in the space provided below. The statement should be prepared as follows:

Kona Daze Co.
Contribution Margin Income Statement
For the Month Ended April 30, 2015

Sales $

Costs

The following data are available from the accounting records of Kona Daze Co. for the month ended

April 30, 2015. 17,000 units were manufactured and sold during the accounting period at a price of $60 per unit.

There was no beginning inventories and all units were completed (no work in process).

Cost
Manufacturing costs: Total Cost Number of Units Unit Cost Variable $442,000 17,000 $26 Fixed 170,000 17,000 10 Total $612.000 $36 Selling and administrative expenses: Variable ($2 per unit sold) $34,000 Fixed 32,000 Total $66,000

Required:         Prepare a contribution margin income statement in the space provided below. The statement should be prepared as follows:

Explanation / Answer

Answer:

Kona Daze Co. Contribution Margin Income Statement For the Month Ended April 30, 2015 Sales (17000*60) 1020000 Less: variable cogs 442000 Manufacturing margin 578000 Less: variable selling and administration expenses 34000 Contribution margin 544000 Less: Fixed production expenses 170000 Less: Fixed selling and administartion expenses 32000 Net income 342000

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