Cost of Goods Manufactured, using Variable Costing and Absorption Costing

Yankovich Inc.

Variable Costing Income Statement

For the Month Ended October $31$

Sales

$$720,000$

Variable cost of goods sold:

Variable cost of goods manufactured

$$403,200$

Inventory, October $31$

$(57,600)$

Total variable cost of goods sold

$\frac{(345,600)}{\text{\$}374,400}$

Manufacturing margin

Total variable selling and administrative expenses

Contribution margin

$\frac{(86,400)}{\text{\$}288,000}$

Fixed costs:

Fixed manufacturing costs

$$184,800$

Fixed selling and administrative expenses

$57,600$

Total fixed costs

$[(242,400)],[$$$45,600]$

Operating income

Determine the unit cost of goods manufactured, based on $($a$)$ the variable costing concept and $($b$)$ the absorption costing concept.

$($a$)$ Variable costing $

$($b$)$ Absorption costing $!$