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The following data are from the accounting records of Niles Castings for year 2. Units produced and sold 89,000 Total revenues and costs Sales revenue
The following data are from the accounting records of Niles Castings for year 2.
Units produced and sold | 89,000 | ||
Total revenues and costs | |||
Sales revenue | $ | 280,000 | |
Direct materials costs | 65,000 | ||
Direct labor costs | 40,000 | ||
Variable manufacturing overhead | 15,000 | ||
Fixed manufacturing overhead | 42,000 | ||
Variable marketing and administrative costs | 13,500 | ||
Fixed marketing and administrative costs | 30,000 | ||
Required:
a. Prepare a gross margin income statement.
b. Prepare a contribution margin income statement.
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