The following information pertains to the first year of operation for Crystal Co

Question

The following information pertains to the first year of operation for Crystal Cold Coolers Inc Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($186,000/3,100 units) Total variable selling expenses ($12 per unit sold) Total fixed general and administrative expenses 3,100 2,400 $345 60 45 12 60 28,800 60,000 Required Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year. (Do not leave any numeric cells blank, enter a zero wherever required.) CRYSTAL COLD COOLERS INC Full Absorption Costing Income Statement Sales Less: Cost of Goods Sold Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses Variable Selling Expense Fixed General and Administrative Expenses Net Operating Income

Explanation / Answer

CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Sales    8,28,000.00 Less: Cost of Goods Sold Beginning Inventory                       -   Cost of Goods Manufactured - Direct Material    1,86,000.00 - Direct Labour    1,39,500.00 - Variable Manufacturing Ovehead       37,200.00 - Fixed Manufacturing Ovehead    1,86,000.00 Cost of goods available for sale    5,48,700.00 Ending Inventory    1,23,900.00 Cost of Goods Sold    4,24,800.00 Gross Margin    4,03,200.00 Less: Non Manufacturing Expenses - Variable Selling Expesnes       28,800.00 - Fixed General & admin. expense       60,000.00       88,800.00 Net Operating Income    3,14,400.00 CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Sales ( 2,400 units)    8,28,000.00 Less: Variable Cost of Goods Sold Beginning Inventory                       -   Variable Manufacturing Cost: - Direct Material    1,86,000.00 - Direct Labour    1,39,500.00 - Manufacturing Ovehead       37,200.00 Cost of goods available for sale (3,100 units)    3,62,700.00 Ending Inventory ( 700 units)       81,900.00 Variable Cost of Goods Sold    2,80,800.00 Less: Variable Selling Expense       28,800.00 Contribution Margin    5,18,400.00 Less: Fixed Cost - Fixed Mfg overhead expense    1,86,000.00 - Fixed General & admin. expense       60,000.00    2,46,000.00 Net Operating Income    2,72,400.00

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