Brief Exercise 134 During 2016, Basler Manufacturing produced 60,000 units and s

Question

Brief Exercise 134

During 2016, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable manufacturing costs were $4 per unit. Annual fixed manufacturing overhead was $120,000 ($2 per unit). Variable selling and administrative costs were $1 per unit sold, and fixed selling and administrative costs were $30,000.

Prepare a variable costing income statement.

BASLER MANUFACTURING
Income Statement (Variable Costing)

Variable Selling and Administrative ExpensesNet Income / (Loss)Fixed Selling and Administrative ExpensesVariable Cost of Goods SoldContribution MarginFixed Manufacturing OverheadRevenuesSales

$

Contribution MarginFixed Selling and Administrative ExpensesVariable Selling and Administrative ExpensesNet Income / (Loss)Fixed Manufacturing OverheadRevenuesSalesVariable Cost of Goods Sold

$

RevenuesFixed Selling and Administrative ExpensesNet Income / (Loss)SalesVariable Cost of Goods SoldVariable Selling and Administrative ExpensesContribution MarginFixed Manufacturing Overhead

Fixed Manufacturing OverheadNet Income / (Loss)Variable Cost of Goods SoldVariable Selling and Administrative ExpensesContribution MarginRevenuesSalesFixed Selling and Administrative Expenses

Fixed Manufacturing OverheadFixed Selling and Administrative ExpensesSalesVariable Cost of Goods SoldRevenuesVariable Selling and Administrative ExpensesNet Income / (Loss)Contribution Margin

Fixed Selling and Administrative ExpensesVariable Selling and Administrative ExpensesNet Income / (Loss)RevenuesSalesContribution MarginFixed Manufacturing OverheadVariable Cost of Goods Sold

SalesVariable Cost of Goods SoldFixed Selling and Administrative ExpensesFixed Manufacturing OverheadNet Income / (Loss)Variable Selling and Administrative ExpensesContribution MarginRevenues

$

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Sales = 55000* 10             550,000.00 Less Variable Expenses Variable manufacturing costs = 55000*4             220,000.00 Variable selling and administrative costs = 55000*1                55,000.00 Contribution Margin             275,000.00 Fixed cost fixed manufacturing overhead             120,000.00 fixed selling and administrative costs                30,000.00 Net operating income             125,000.00

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