Walsh company provided following information for August B c D E F G Beginning inventory, August 1 5,000 units Units produced during August Units sold during August Selling price per unit 30,000 units 28,000 units $75 per unit The cost information for August are as follows: Total costs Number of units Unit cost Beginning Inventory: Manufacturing costs Variable Fixed Total Current Period: Manufacturing costs Variable Fixed Total Selling and Admin Expenses Variable Fixed Total 110,000 5,000 22 50,000 5,000 10 160,000 32 750,000 30,000 25 450,000 30,000 15 1,200,000 40 328 224,000 28,000 8 160,000 384,000 Required: Assuming that Walsh use FIFO inventory costing method, prepare an income statement for August using: A. Absorption Costing B. Varibale Costing Siddique, Salina: COGS COM EL Solution: A. Absorption Costing Income Statement Sales Costs of Goods Sold Beginning inventory Plus, Casts of Goods Manufactured Less Ending Inventory Total Costs of Goods Sold Gross Profit less Selling and Administrative expenses Income from Operation B. Variable Costing Income Statement Sales Variable Costs of Goods Sold Beginning inventory Variable Manufacturing costs less Ending Inventory Total Variable COGS Manufacturing Margin Less Variable Selling and Administrative Expenses 160.000 1,200,000 280.000 2,100,000 H 1.080.000 Siddique, Salina Ending inventory units 81+ Units Produced-Units sold 5,000 30,000-28,000-7,000 units 1.020.000 384.000 63.000 2,100,000 110,000 750.000 175.000 685.000 1,415,000 224.000 Contribution margin 1,191,000 Less Fixed costs Fixed manufacturing costs 450,000 Fixed Selling and Administrative expenses 180.000 Total Fixed costs Income from Operation 610.000 581.000 1 1 L M N