le-class scrise Ch 1 Grell Seat Martin Manufacturing hos the following co r e for the year 2018, 2019 Variable cos por un Manufacturing Director Direct labor Variable manufacturing overhead Variable selling and admistrative Fixed cost per year Fixed manufacturing overhead Fixed selling and admistrative $10 $7 $3 $600,000 $400,000 The product sells for $50/unit. In 2018, beginning inventory was zero. Martin produced 50,000 units and sold 45,000 units in 2019, Martin produced 40,000 units and sold 45,000 Fill out the inventory sheet below 2018 2019 Units In Beginning inventory Units produced Units sold S0.000 45.000 5,000 5.000 40.000 45.000 0 Units in Ending inventory Prepare income statement for 2018 and 2019 using absorption costing. First, we want to figure out the unit product cost under absorption: 2018 2019 DM, DL, Variable mfg. OH Cost per unit - Variable Fixed mfg. OH cost per unit Unit product cost-Absorption costing Prepare the absorption costing SALES 2019 SU00 BEGINNING INVENTORY PLUS COST OF GOODS MIG LESS, ENDING INVENTORY COST OF GOODS SOLD Gross margin Variable SELLING AND ADMINSTRATIVE Fixed SELLING AND ADMINSTRATIVE Operating income Figure out the unit product cost under absorption: 2018 2019 DM, DL, Variable mfg. OH Cost per unit - Variable Unit product cost-Variable Costing Prepare the variable costing income statement: 2018 2019 SALES BEGINNING INVENTORY PLUS COST OF GOODS MFG LESS: ENDING INVENTORY COST OF GOODS SOLD Variable selling and administrative Contribution margin Fixed manufacturing OH Fixed SELLING AND ADMINSTRATIVE OPERATING income Explain the difference between absorption costing and variable costing met operating income 2018 and 2019. In 2018 units produced Variable costing NOI: Units sold Plus: fixed OH deferred in ending inventory units X ($ - per unit = Absorption costing NOI: In 2019 Variable costing NOI: _units produced Units sold Minus: Fixed OH released into beg. inventory units X ($ c. ) per unit = Absorption costing NOI