Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 2,600 units and sold 2,200 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 201 Sales Variable cost of goods sold: Variable cost of goods manufactured Einventory, December 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Income from operations $770,000 $436,800 (67,200) 369,600 $400,400 92,400 $308,000 $200,200 61,600 261,800 $46,200 Previous Next