M08 worksheet 2 Type of account Selling Price Price and costs $15/unit Variable Cost per unit Absorption Cost per unit Manufacturing costs Direct materials $4/unit Direct labor $2/unit Variable Overhead $1/unit Fixed Overhead $480,000/year Selling and Adminstrative Expenses Units in Ending Inventory 20,000 Convert Income Statement to Absorbtion Variable $0.25/unit Fixed $80,000/year Year Units Produced Units sold Footballs 120,000 100,000 Footballs Variable Costing Footballs Sales Variable Costing Net Income Direct Materials Add Fixed OH in ending Inventory Direct Labor Less Fixed OH in beginning Inventory Absorption Net Income Variable OH Variable S&A Total Variable Costs Contribution Margin Fixed OH Fixed S&A Net Income Balance Sheet Ending Inventory Footballs Absorption Costing Income Statement Sales Direct Materials Direct Labor Variable OH Fixed OH COGS Gross Margin S&A Variable S&A Fixed Net Income Balance Sheet Ending Inventory