Question 12

During 2020, Rafael Corp. produced 39,100 units and sold 39,100 for $15 per unit. Variable manufacturing costs were $7 per unit. Annual fixed manufacturing overhead was $117,300 ($3 per unit). Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses were $19,200. Prepare a variable-costing income statement.

Rafael Corp. Income StatementVariable Costing December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
Variable costsSalesTotal variable costsOperating income before taxContribution marginTotal fixed costsFixed costs				$
AddLess : SalesFixed costsContribution marginVariable costsTotal variable costsTotal fixed costsOperating income before tax
Variable costs of goods manufactured Variable cost of goods sold Variable costs of goods available for sale Variable selling and administrative expenses Fixed selling and administrative expenses Fixed manufacturing overhead Operating income before tax		$
Variable costs of goods available for sale Variable costs of goods manufactured Fixed manufacturing overhead Variable cost of goods sold Variable selling and administrative expenses Fixed selling and administrative expenses Operating income before tax
Sales Fixed costs Total variable costs Contribution margin Operating income before tax Variable costs Total fixed costs
SalesOperating income before taxContribution marginTotal fixed costsFixed costsVariable costsTotal variable costs
AddLess : Contribution marginFixed costsVariable costsTotal variable costsSalesTotal fixed costsOperating income before tax
Fixed manufacturing overhead Variable cost of goods sold Variable selling and administrative expenses Fixed selling and administrative expenses Operating income before tax Variable costs of goods available for sale Variable costs of goods manufactured
Operating income before tax Variable selling and administrative expenses Variable costs of goods available for sale Fixed selling and administrative expenses Variable costs of goods manufactured Variable cost of goods sold Fixed manufacturing overhead
Fixed costs Variable costs Sales Total variable costs Operating income before tax Contribution margin Total fixed costs
SalesOperating income before taxTotal variable costsVariable costsTotal fixed costsContribution marginFixed costs				$