selling price per unit is $68 Variable manufacturing costs per unit manufactured
ID: 2543948 • Letter: S
Question
selling price per unit is $68
Variable manufacturing costs per unit manufactured (includes direct materials [DM], direct labor [DL], and variable MOH) - $35
Variable operating expenses per unit sold - $3
Fixed manufacturing overhead (MOH) in total for the year - $126,000
Fixed operating expenses in total for the year - $93,000
Units manufactured and sold for the year - 9,000
'Rafferty's Products manufactures a single product. Cost, sales, and production information for the company and its single product is as follows: (Click the icon to view the data ) Read the requirements. Requirement 1. Prepare an income statement for the upcoming year using variable costing. O'Rafferty's Products Contribution Margin Income Statement (Varlable Costing) For the Year Ended December 31 Requirements Less: 1. Prepare an income statement for the upcoming year using variable costing. ] - I Prepare an income staternent for the upcoming year using absorption costing 2. Print Done Less:Explanation / Answer
CNTRIBUTION MARGIN INCOME STATEMENT Sales revenue (9000 units @68) 612000 Less: Variable cost Variable manufacturing cost(9000 units @ 35) 315000 Variable operating expense (9000 units @ 3) 27000 Contribution margin 270000 Less: Fixed cost Fixed manufacturing overeads 126000 Fixed operating expense 93000 Net income 51000 INCOME STATEMENT (ABSORPTION COSTING) Sales revenue 612000 Less: Cost of Goods sold 441000 Gross Margin 171000 Less: Operating expense 120000 Net income 51000 Note: Under Aabsorption costing, the fixed manufacturing overheads will a part of COGS
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