Question
Direct Materials $10 per unit Direct Labor $20 per unit Variable OH costs $10 per unit Fixed OH costs $240,000 per year In addition to
Direct Materials $10 per unit
Direct Labor $20 per unit
Variable OH costs $10 per unit
Fixed OH costs $240,000 per year
In addition to the information provided above the Company also had:
Variable selling and administrative expenses $4 per unit
Fixed selling and administrative expenses $120,000 per year
Prepare and Income Statement for Vijay Company using the traditional absorption costing method and an income statement using the variable costing method assuming they sold 30,000 units at a sales price of $70 per unit. (Round all of your answers to the nearest whole dollar.)
Income Statement (Traditional Absorption Costing)
Sales |
|
Cost of Goods Sold |
|
Gross Margin |
|
Selling and administrative expenses
|
|
Net income |
|
Income Statement (Variable Costing)
Sales |
|
Variable Expenses: |
|
Variable production costs
|
|
Variable selling & admin. costs
|
|
Contribution Margin |
|
Fixed Expenses: |
|
Fixed Overhead |
|
Fixed selling & admin. expenses |
|
Net income |
|
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