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Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable 24,000 $290.00 $6,960,000 Fixed 24,000 35.00 840,000 Total $325.00 $7,800,000

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Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable 24,000 $290.00 $6,960,000 Fixed 24,000 35.00 840,000 Total $325.00 $7,800,000 Manufacturing costs in February: Variable 143,000 Fixed 143,000 $290.00 - $41,470,000 40.40 5,777,200 $330.40 $47,247,200 Total Selling and administrative expenses in February: Variable 167,000 26.90 $4,492,300 835,000 Fixed 167,000 5.00 Total 31.90 $5,327,300 Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Sales $ $ Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold $ Gross profit Selling and administrative expenses Operating income Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Sales $ Variable cost of goods sold $ Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Fresno Industries Inc, manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (167,000 units) during the first month, creating an ending Inventory of 24,000 units. During February, the company produced 143,000 units during the month but sold 167,000 units at $580 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable $290.00 24,000 24,000 $6,960,000 840,000 Fixed 35.00 Total $325.00 $7,800,000 Manufacturing costs in February: Variable 143,000 $290.00 $41,470,000 Fixed 143,000 40.40 5,777,200 $47,247,200 $330.40 Total Selling and administrative expenses in February: Variable Fixed 26.90 167,000 167,000 $4,492,300 835,000 5.00 Total 31.90 $5,327,300 om the analysis and input your answers in the questions below

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