32 part 1

Tamarisk Products Ltd. has just created a new division to manufacture and sell DVD players. The facility is highly automated and thus has high monthly fixed costs, as shown in the following schedule of budgeted monthly costs. This schedule was prepared based on an expected monthly production volume of 2,060 units. $29 Manufacturing costs Variable costs per unit Direct materials Direct labour Variable overhead Total fixed overhead Selling and administrative costs 39 10 65.920 Variable 4% of sales $47.300 Fixed During August 2022, the following activity was recorded: Units produced Units sold 2,060 1,790 Selling price per unit $180 TAMARISKPRODUCTS LTD. Income Statement-Absorption Costing $ Variable costs Inventory, ending Total variable costs Cost of goods available for sale Total fixed costs Gross profit Cost of goods sold Inventory, beginning Selling and administrative expenses Net income Costs of goods manufactured Sales Fixed costs