Question
Please help me to do The Statement of Income Statement - Absorption Approach.

Please explain details the part how to get numbers Cost Of Goods Sold, that where I am having problems how to find it for this Income statement
SOME BASIC DATA Average selling prices Manufacturing variable costs (per unit made) Selling variable costs (per unit sold) Administrative variable costs (per unit sold) 362.50 80.00 0.50 20.00 Manufacturing fixed costs Selling fixed costs Administrative fixed costs General fixed costs 50,000.00 25,000.00 80,000.00 50,000.00 Fixed Revenues 12,000.00 Opening inventory Units made Units sold Closing inventory 250 1000 900 350 Assumptions: same level of production and efficiency in the previous year
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INCOME STATEMENT - ABSORPTION METHODINCOME STATEMENT ABSORPTION APPROACH Sales (900units x $362.5) Less: COGS Gross Profit Less: Selling & Administartive Variable [(20+0.5) x 900] Fixed (2500080000) Less: General Fixed Costs Operating Income Add : Fixed Revenues Total Income 326250 117000 209250 18450 105000 50000 35800 12000 47800 Calculation of COGS Under absorption costing method, Maufacturing costs(Variable & Fixed) are abrobed on per unit basis i.e. Total of such costs is divided by no. of units produced, then such per unit cost is applied on unit sold to calculate COGS. While other fixed expenses (Selling & others, General exps) are considered period cost & are allocated on actual basis Manufacturing variable Cost Manufacturing Fixed Cost (50000/1000) Cost per Unit Cost of goods sold(900unitsx130) 80 50 130 117000

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