Question
Glendale Company sells its product at a unit price of $12.00. Unit manufacturing costs are direct materials, $2.00; direct labor, $3.00; and variable manufacturing overhead,
Glendale Company sells its product at a unit price of $12.00. Unit manufacturing costs are direct materials, $2.00; direct labor, $3.00; and variable manufacturing overhead, $1.50. Total fixed manufacturing costs are $30,000 per year. Selling and administrative expenses are $1.00 per unit variable and $11,000 per year fixed.During 2009, 25,000 units were produced and sold. There was no beginning inventory. (a) Help me with a functional income statement using absorption costing. (Do not use negative signs with your answers.)
Glendale Company Functional (Absorption Costing) Income Statement For the year 2009 | ||
---|---|---|
Sales | Answer | |
Cost of goods sold | Answer | |
Gross profit | Answer | |
Other expenses: | ||
Variable selling and administrative | Answer | |
Fixed selling and administrative | Answer | Answer |
Net income | Answer |
(b) Help me with a contribution income statement using variable costing. (Do not use negative signs with your answers.)
Glendale Company Contribution (Variable Costing) Income Statement For the year 2009 | ||
---|---|---|
Sales | ||
Variable expenses: | ||
Cost of goods sold | ||
Selling and administrative | ||
Contribution margin | ||
Fixed expenses: | ||
Manufacturing overhead | ||
Selling and administrative | ||
Net income |
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