Answer To: College: Yuba Community College Course: Accounting 1 LAB (online) Platform/Website: Cengage...
Khushboo answered on Oct 14 2021
Worksheet
VARCOST
Variable Costing
Data Section
Actual production in units 100,000
Sales in units 80,000
Sales price per unit $30
Variable manufacturing costs per unit $14
Variable selling costs per unit $2
Fixed manufacturing costs $315,000
Fixed selling expenses $100,000
Answer Section
Income statement: Absorption costing
Sales $2,400,000
Cost of goods sold:
Variable manufacturing costs $1,400,000
Fixed manufacturing costs 315,000
Total goods available for sale $1,715,000
Less ending inventory 343,000
Cost of goods sold 1,372,000
Gross profit $1,028,000
Selling expenses:
Fixed selling expenses $100,000
Variable selling expenses 160,000
Total selling expenses 260,000
Operating income $768,000
Income statement: Variable costing
Sales $2,400,000
Cost of goods sold:
Variable manufacturing costs $1,400,000
Less ending inventory 280,000
Variable cost of goods sold 1,120,000
Manufacturing margin $1,280,000
Variable selling expenses 160,000
Contribution margin $1,120,000
Fixed costs:
Fixed manufacturing...