Green Incorporated manufactures a product with a selling price of $65 per unit.
ID: 2567289 • Letter: G
Question
Green Incorporated manufactures a product with a selling price of $65 per unit.
The Direct Materials costs $14 per unit.
The Direct Labor costs $12 per unit.
Variable Manufacturing Overhead costs $7 per unit.
Fixed Manufacturing Overhead costs $35,000 per month.
Variable Selling and Administrative costs $5 per unit.
Fixed and Administrative costs- $18,000.
Please complete the following showing how you reached the solution:
A. Complete the month's Contribution Margin Income Statement Budget for Green Incorporated assuming they plan to sell 10,000 units of product.
B. Complete the month's Fiancial Statement Income Statement Budget for Green Incorporated assuming they plan to sell 11,000 units.
Total Sales Variable Cost Contribution Margin Fixed Costs Operating IncomeExplanation / Answer
Answer to A
Answer to B
Particulars Total Sales (65 x 11000) 715000 Cost of Goods Sold (working Note) 398000 Contribution Margin 317000 Selling and admin cost (11000 x 5 + 18000) 73000 Operating Income 244000 Particulars Total Material (11000 x 14) 154000 Labor (11000 x 12) 132000 Variable manufacturing Overhead (11000 x 7) 77000 Fixed manufacturing overhead 35000 Cost of Goods Sold 398000Related Questions
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