PIUNT & PUPULUNU VUTTON Electra Inc operated at 100% of capacity during its first month and provided following information 35 5 Production costs (10,000 units) Dollars Per Unit 6 Units Produced 10,000 Fill in grey cells Use formulas Direct materials $150,000 $15 Direct labor 50.000 Variable factory overhead 20.000 $2 10 Fixed factory overhead 10.000 11 Total Production Costs (10.000 units) $230,000 523 Useful for absorption only Operating expenses (SGA) 1 Variable operating expenses $30,000 53 Td Fixed operating expenses $5,000 15 Total Operating expenses 35.000 54 10 12 Units sold Price/Unit 10 Electra sold 8,000 units during the first month at a price of $35 per unit 8,000 S 280.000 Fil in grey cells 19 30 Required: 3 Calculate 2 A Income from operations and Ending inventory under the Absorption costing, 23 B. Income from operations and Ending inventory under the Variable costing 24 25 Solution: 20 A Absorption costing Fill in grey cells Use formulas 27 Sales $230.000 28 COGS Gross profit 0 Operating expenses 30 Income from operations 32 33 For Absorption costing Dollars Units 34 Product costs per unit 35 Ending inventory 36 37 38 B. Variable costing Fill in grey cells Use formulas 39 Sales 40 Total variable costs (VCOGS + VSGA 41 Contribution margin 42 Total fixed costs (Fixed OH + FSGA) Income from operations 44 45 For Variable costing Dollars Units 46 Product costs per unit produced 47 Ending inventory 48 49 50 51