Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2022 Brookes Inc. sold 55,000 units at a selling price of $44 per unit. The company manufactured 80,000 units. Variable manufacturing costs were $12

In 2022 Brookes Inc. sold 55,000 units at a selling price of $44 per unit. The company manufactured 80,000 units. Variable manufacturing costs were $12 per unit manufactured. Fixed manufacturing costs amounted to $351,000. Variable marketing costs were $12 per unit sold, and the budgeted and actual fixed marketing costs were $40,000. Other fixed operating expenses amounted to $11,000. There was no beginning inventory.
Do not enter dollar signs or commas in the input boxes.
Calculate to two decimal places
a) Calculate the company's 2019 operating income using absorption costing.
Revenues
Cost of Goods Sold:
Beginning Inventory
Cost of Goods Manufactured
Less: Ending Inventory
Cost of Goods Sold
Gross Margin
Operating Expenses:
Marketing Costs
Other Fixed Operating Expenses
Total Operating Expenses
Operating Income
b) Calculate the company's 2019 operating income using variable costing.
Revenues
Variable Cost of Goods Sold
Beginning Inventory
Cost of Goods Manufactured
Less: Ending Inventory
Variable Cost of Goods Sold
Variable Marketing Costs
Contribution Margin
Operating Expenses:
Fixed Manufacturing Overhead Costs
Fixed Marketing Costs
Other Fixed Operating Expenses
Income from Operations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Text Problems And Cases

Authors: M. Y. Khan, P K Jain

7th Edition

9352606787, 978-9352606788

More Books

Students also viewed these Accounting questions

Question

Describe the various methods for establishing ethical standards.

Answered: 1 week ago

Question

=+1. How can the process of movie utilization be described?

Answered: 1 week ago