Question
Larcker Manufacturing's cost accountant has provided you with the following information for January operations. Direct materials $ 36 per unit Fixed manufacturing overhead costs $
Larcker Manufacturing's cost accountant has provided you with the following information for January operations.
| Direct materials | $ | 36 | per unit |
| Fixed manufacturing overhead costs | $ | 200,000 | |
| Sales price | $ | 200 | per unit |
| Variable manufacturing overhead | $ | 19 | per unit |
| Direct labor | $ | 32 | per unit |
| Fixed marketing and administrative costs | $ | 185,000 | |
| Units produced and sold | $ | 5,500 | |
| Variable marketing and administrative costs | $ | 7 | per unit |
Required:
a. Prepare a gross margin income statement.
b. Prepare a contribution margin income statement.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-0078025365
