Question

variable-Costing income Statement During the most recent year, Beyta Company had the following data: Units in beginning inventory Units produced Units sold ($60 per unit) Variable costs per unit: Direct materials 10,000 8,800 Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under variable costing. 2. Prepare an income statement using variable costing. Beyta Company Income Statement under Variable Costing For the Most Recent Year Sales $ 528,000 Less: Variable expenses Contribution margin Less fixed expenses: Fixed overhead Fixed selling and administrative 138,000 Operating income

Answer 1

1.

Variable cost of goods sold = 8,800 * $24 ($12+7+5) = $211,200

2.

Beyta Company Income Statement Under Variable Costing For The Most Recent Year
Sales		$528,000
Less: Variable expenses		211,200
Contribution margin		316,800
Less: Fixed expenses:
Fixed overhead (10,000*$8)	$80,000
Fixed selling and administrative	138,000	218,000
Operating income		$98,800