I Problem 3 2 3 Walsh company provided following information for August: 4 5 Beginning inventory, August 1 5,000 units 5 Units produced during August 30,000 units 7 Units sold during August 28,000 units 8 Selling price per unit $75 per unit 9 0 The cost information for August are as follows: 1 12 Total costs Number of units Unit cost 13 Beginning Inventory: 14 Manufacturing costs Variable 110,000 5,000 22 16 Fixed 50,000 5,000 10 T Total 160,000 62 18 Current Period: 79 Manufacturing costs 20 Variable 750,000 30,000 25 21 Fixed 450,000 30,000 15 22 Total 1,200,000 40 23 Selling and Admin Expenses 24 Variable 224,000 28,000 8 25 Fixed 160,000 26 Total 384,000 27 28 Required: 29 Assuming that Walsh use FIFO inventory costing method, prepare an income statement for August using: 30 A Absorption Costing 31 . Varibale Costing 32 33 Solution: 34 A. 35 Absorption Costing Income Statement $ $ 36 Sales 37 Costs of Goods Sold Beginning inventory 39 Plus, Costs of Goods Manufactured 40 Less Ending Inventory Total Costs of Goods Sold 42 Gross Profit 43 less Selling and Administrative expenses 44 Income from Operation 45 41 $ 5 . 7 Variable Costing Income Statement 8. Sales -9 Variable costs of Goods Sold 50 Beginning inventory 51 Variable Manufacturing costs less Ending Inventory 58 Total Variable COGS 54 Manufacturing Margin 55 Less Variable Selling and Administrative Expenses 58. Contribution margin 57 Less Fixed costs 58 Fixed manufacturing costs 59 Fixed Selling and Administrative expenses 60 Total Fixed costs Income from Operation