E5-20 Comparing Full Absorption Costing and Variable Costing [LO 5S-1) The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: 3.000 2,500 350 80 $ Number of units produced Number of units sold Unit sales price Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($225,000 + 3,000 units) Total variable selling expenses ($15 per unit sold) Total fixed general and administrative expenses 37,500 65,000 Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income statement for the year CRYSTAL COLD COOLERS INC. Full Absorption Costing Income Statement Sales $ 875,000 Less Cost of Goods Sold Beginning Inventory Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inventory 0 112,500 562,500 312.500 Cost of Goods Sold Gross Margin Less Non-Manufacturing Expenses Type here to search DOLL Total variable selling expenses (515 per unit sold) Total fixed general and administrative expenses Required: Prepare Crystal Cold's full absorption costing income statement and variable costing income CRYSTAL COLD COOLERS INC. Full Absorption Costing Income Statement Sales Less: Cost of Goods Sold Beginning Inventory Cost of Goods Manufactured $ 875,000 Cost of Goods Available for Sale Ending Inventory | 112,500 SE 562,500 312,500 Cost of Goods Sold - Gross Margin Less: Non-Manufacturing Expenses Variable Selling Expense Fixed General and Administrative Expenses 37,500 65,000 Net Operating Income $ 210,000 Type here to search OBI e 9 CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Sales Less: Variable Cost of Goods Sold $ 875,000 Cost of Goods Available for Sale 0 Variable Cost of Goods Sold Variable Selling Expenses 375,000 37,500 462,500 Contribution Margin Less: Fixed Costs Fixed Manufacturing Overhead Expenses Fixed General and Administrative Expenses 225,000 5,000 SE 6 Net Operating Income $ 172,500 References eBook & Resources Type here to search