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Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $58, of which $40 is variable. No units were

Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $58, of which $40 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $91 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016

Units Manufactured Units Sold
2015 120,000 90,000
2016 120,000 130,000

a. Prepare gross profit computations for 2015 and 2016 using absorption costing. Do not use negative signs with your answers.

Absorption Costing
2015 2016
Sales Answer

Answer

Cost of goods sold:
Beginning inventory Answer

Answer

Production Answer

Answer

Goods available Answer

Answer

Less: Ending inventory Answer

Answer

Cost of goods sold Answer

Answer

Gross profit Answer

Answer

b. Prepare gross profit computations for 2015 and 2016 using variable costing. Do not use negative signs with your answers.

Variable Costing
2015 2016
Sales Answer

Answer

Variable cost of goods sold:
Beginning inventory Answer

Answer

Production Answer

Answer

Goods available Answer

Answer

Less: Ending inventory Answer

Answer

Variable cost of goods sold Answer

Answer

Less: Fixed manufacturing costs Answer

Answer

Gross profit Answer

Answer

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