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Safari File Edit View History Bookmarks Window Help ??? 49% 8 ?4) Sat Jun 16 6:52 PM Alex 2 :? ezto.mheducation.com Home -alamo.edu MicGraw-Hill Connect Chapter 5 Exercises 12.50 points The fo iasing infomation portains to tha frt yoar of oparaion for Cryatal Cold Coolna in. 28c0 2.400 $ 330 Number of ynits sold Direct materas per unit Diroct Iabor variabio monufactuning ovamoad per unt caed per unit (5168,0002 820 units) Total variabiù saling ?.pana. S 15 par unit Gold Total fooed ger and amirisave pase 60,000 Required Prepere Crystal Cold\'s full abeorption cosingincome statement and variable costing income statement for the yeer. Do not leave any mnameric cells blank, enter s zero wherever required of Goods Availablo for Salo of Goods Sold Oparaing Ihcomo ton Margn popcorntime ap

Solution

Income Statement under Absorption Sales revenue (2400*330) 792000 less: Cost of Goods sold Beginning Inventory 0 Current manufacturing cost Mmaterial (2800*60) 168000 Labour (2800*50) 140000 Oh (2800*15) 42000 Fixed 168000 Cost of Goods available for sale 518000 Less: Ending Inventoy 74000 (400 units @ 185) Cost of Goods sold 444000 Gross Margin 348000 Less: Selling and admin oh Variable (2400*15) 36000 Fixed 60,000 Net income 252,000 Income Statement under variable costing Sales revenue (2400*330) 792000 less: Cost of Goods sold Beginning Inventory 0 Current manufacturing cost Mmaterial (2800*60) 168000 Labour (2800*50) 140000 Oh (2800*15) 42000 Variable Cost of Goods available for sale 350000 Less: Ending Inventoy 50000 (400 units @ 125) Vvariable cost of goods sold 300000 Variable Sselling expnse 36000 Total Variable cost 336000 Contribution Margin 456000 Les: Fixed cost (2400*15) Mannufacturing 168,000 Selling expense 60,000 Net income 228000