6 Data Section: 7 8 Actual production in units 100,000 9 Sales in units 80,000 1
ID: 3419670 • Letter: 6
Question
6 Data Section: 7 8 Actual production in units 100,000 9 Sales in units 80,000 10 Sales price per unit $30 11 Variable manufacturing costs per unit $14 12 Variable selling costs per unit $2 13 Fixed manufacturing costs $630,000 14 Fixed selling expenses $100,000 61 15 - - - 16 Answer Section: 17 Income statement: Absorption costing 18 19 Sales FORMULA1 20 Cost of goods sold: 21 Variable manufacturing costs FORMULA2 22 Fixed manufacturing costs FORMULA3 23 ---------- 24 Total goods available for sale $0 25 Less ending inventory FORMULA4 26 ---------- 27 Cost of goods sold $0 28 ---------- 29 Gross profit $0 30 Fixed selling expenses FORMULA5 31 Variable selling expenses FORMULA6 32 ---------- 33 Operating income $0 34 ========== _ _ _ 35 Income statement: Variable costing 36 37 Sales $0 38 Cost of goods sold: 39 Variable manufacturing costs FORMULA7 40 Less ending inventory FORMULA8 41 ---------- 42 Variable cost of goods sold $0 43 ---------- 44 Manufacturing margin $0 45 Variable selling expenses FORMULA9 46 ---------- 47 Contribution margin $0 48 Fixed manufacturing costs FORMULA10 49 Fixed selling expenses 0 50 ---------- 51 Operating income $0 52 ========== 6 Data Section: 7 8 Actual production in units 100,000 9 Sales in units 80,000 10 Sales price per unit $30 11 Variable manufacturing costs per unit $14 12 Variable selling costs per unit $2 13 Fixed manufacturing costs $630,000 14 Fixed selling expenses $100,000 61 15 - - - 16 Answer Section: 17 Income statement: Absorption costing 18 19 Sales FORMULA1 20 Cost of goods sold: 21 Variable manufacturing costs FORMULA2 22 Fixed manufacturing costs FORMULA3 23 ---------- 24 Total goods available for sale $0 25 Less ending inventory FORMULA4 26 ---------- 27 Cost of goods sold $0 28 ---------- 29 Gross profit $0 30 Fixed selling expenses FORMULA5 31 Variable selling expenses FORMULA6 32 ---------- 33 Operating income $0 34 ========== _ _ _ 35 Income statement: Variable costing 36 37 Sales $0 38 Cost of goods sold: 39 Variable manufacturing costs FORMULA7 40 Less ending inventory FORMULA8 41 ---------- 42 Variable cost of goods sold $0 43 ---------- 44 Manufacturing margin $0 45 Variable selling expenses FORMULA9 46 ---------- 47 Contribution margin $0 48 Fixed manufacturing costs FORMULA10 49 Fixed selling expenses 0 50 ---------- 51 Operating income $0 52 ==========Explanation / Answer
19. sales ==> 80000*30 = $ 2400000
21. Variable manufacturing costs ==> actual units manufactured * Variable manufacturing costs per unit
= 100000*14 =$ 1400000
22 Fixed manufacturing costs ==> actual units manufactured * Fixed manufacturing costs per unit
= $630,000
25 Less ending inventory ==> 20000 units left to sell
30 Fixed selling expenses ==> $ 100000
31 Variable selling expenses ==> Variable selling costs per unit * total units sold
= 2 * 80000 = $ 160000
39 Variable manufacturing costs ==> actual units manufactured * Variable manufacturing costs per unit
= 100000*14 =$ 1400000
40 Less ending inventory ==> 20000 units left to sell
80000 units sold
45 Variable selling expenses ==> Variable selling costs per unit * total units sold
= 2 * 80000 = $ 160000
48 Fixed manufacturing costs ==> actual units manufactured * Fixed manufacturing costs per unit
= $630,000
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