4. During the most recent year, Osterman Company had the following data:

Units in beginning inventory	---
Units produced	10,000
Units sold ($47 per unit)	9,300
Variable costs per unit:
Direct materials	$9
Direct labor	$6
Variable overhead	$4
Fixed costs:
Fixed overhead per unit produced	$5
Fixed selling and administrative expenses	$138,000

Required:
1.	Calculate the cost of goods sold under variable costing.
2.	Prepare an income statement using variable costing.

Labels and Amount Descriptions Refer to the list below for the exact wording of a label or an amount description within your income statement.

Labels

Add: Fixed expenses

Less: Fixed expenses

Amount Descriptions

Contribution margin

Cost of goods sold

Fixed overhead

Fixed selling and administrative expenses

Gross margin

Operating income

Operating loss

Sales

Variable costs

COGS and Income Statement

1. Calculate the cost of goods sold under variable costing. The cost of goods sold under the variable costing method is. 2. Prepare an income statement using variable costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Osterman Company

Variable-Costing Income Statement

For the Most Recent Year

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