Question 8 Following is the revenue and cost data for Barian Ltd in the manufacturing of luxury shower curtains for the year ended December 31, 2020 Variable manufacturing costs $35 per curtain Fixed manufacturing overhead $86,500 Variable selling and administrative expenses $6 per curtain Fixed selling and administrative expenses $184,600 Selling price $85 per curtain Units produced and sold 8,650 Prepare an income statement using absorption costing Barian Ltd Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 Absorption Costing Contribution MarginNet Income (Loss)Variable CostsSalesGross ProfitCost of Goods SoldFixed Costs $ Variable CostsGross ProfitCost of Goods SoldContribution MarginNet Income (Loss)SalesFixed Costs Contribution MarginFixed CostsGross ProfitNet Income (Loss)Cost of Goods SoldSalesVariable Costs Fixed Selling and Administrative Expenses Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Variable Costs of Goods Available for Sale Variable Costs of Goods Manufactured Variable Cost of Goods Sold Variable Costs of Goods Manufactured Variable Costs of Goods Available for Sale Variable Selling and Administrative Expenses Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Variable Cost of Goods Sold Gross ProfitContribution MarginFixed CostsVariable CostsSalesNet Income (Loss)Cost of Goods Sold $ Prepare an income statement using variable costing Barian Ltd Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 Variable Costing Contribution MarginVariable CostsFixed CostsSalesGross MarginCost of Goods SoldNet Income (Loss) $ Variable Selling and Administrative Expenses Variable Cost of Goods Sold Fixed Selling and Administrative Expenses Variable Costs of Goods Available for Sale Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Fixed Manufacturing Overhead Variable Cost of Goods Sold Variable Costs of Goods Available for Sale Fixed Selling and Administrative Expenses SalesGross MarginCost of Goods SoldContribution MarginNet Income (Loss)Fixed CostsVariable Costs Variable Selling and Administrative ExpensesVariable Costs of Goods Available for SaleVariable Cost of Goods SoldFixed Selling and Administrative ExpensesFixed Manufacturing Overhead Variable Costs of Goods Available for SaleFixed Manufacturing OverheadVariable Cost of Goods SoldVariable Selling and Administrative ExpensesFixed Selling and Administrative Expenses SalesVariable CostsCost of Goods SoldGross MarginContribution MarginFixed CostsNet Income (Loss) $

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Question 8

Following is the revenue and cost data for Barian Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2020:

Variable manufacturing costs $35 per curtain

Fixed manufacturing overhead $86,500

Variable selling and administrative expenses $6 per curtain

Fixed selling and administrative expenses $184,600

Selling price $85 per curtain

Units produced and sold 8,650

Prepare an income statement using absorption costing.

Barian Ltd. Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 Absorption Costing
Contribution MarginNet Income / (Loss)Variable CostsSalesGross ProfitCost of Goods SoldFixed Costs		$
Variable CostsGross ProfitCost of Goods SoldContribution MarginNet Income / (Loss)SalesFixed Costs
Contribution MarginFixed CostsGross ProfitNet Income / (Loss)Cost of Goods SoldSalesVariable Costs
Fixed Selling and Administrative Expenses Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Variable Costs of Goods Available for Sale Variable Costs of Goods Manufactured Variable Cost of Goods Sold
Variable Costs of Goods Manufactured Variable Costs of Goods Available for Sale Variable Selling and Administrative Expenses Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Variable Cost of Goods Sold
Gross ProfitContribution MarginFixed CostsVariable CostsSalesNet Income / (Loss)Cost of Goods Sold		$

Prepare an income statement using variable costing.

Barian Ltd. Income Statement December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020 Variable Costing
Contribution MarginVariable CostsFixed CostsSalesGross MarginCost of Goods SoldNet Income / (Loss)		$
Variable Selling and Administrative Expenses Variable Cost of Goods Sold Fixed Selling and Administrative Expenses Variable Costs of Goods Available for Sale Fixed Manufacturing Overhead
Variable Selling and Administrative Expenses Fixed Manufacturing Overhead Variable Cost of Goods Sold Variable Costs of Goods Available for Sale Fixed Selling and Administrative Expenses
SalesGross MarginCost of Goods SoldContribution MarginNet Income / (Loss)Fixed CostsVariable Costs
Variable Selling and Administrative ExpensesVariable Costs of Goods Available for SaleVariable Cost of Goods SoldFixed Selling and Administrative ExpensesFixed Manufacturing Overhead
Variable Costs of Goods Available for SaleFixed Manufacturing OverheadVariable Cost of Goods SoldVariable Selling and Administrative ExpensesFixed Selling and Administrative Expenses
SalesVariable CostsCost of Goods SoldGross MarginContribution MarginFixed CostsNet Income / (Loss)		$