Question

The following information pertains to the first year of operation for Crystal Cold Coolers Inc.:

Number of units produced		3,000
Number of units sold		2,400
Unit sales price	$	335
Direct materials per unit	$	55
Direct labor per unit	$	50
Variable manufacturing overhead per unit	$	13
Fixed manufacturing overhead per unit ($195,000/3,000 units)	$	65
Total variable selling expenses ($13 per unit sold)	$	31,200
Total fixed general and administrative expenses	$	60,000

Required:

Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

Full Absorption Costing Variable Costing Prepare Crystal Cold's full absorption costing income statement for the year. s 352.000 CRYSTAL COLD COOLERS INC. Full Absorption Costing Income Statement Sales Less: Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses Variable Selling Expense Fixed General and Administrative Expenses Net Operating Income Full Absorption Costing Variable Costing Prepare variable costing income statement for the year. CRYSTAL COLD COOLERS INC. Variable Costing Income Statement Sales Less: variable cost of goods sold Variable Selling Expenses Cost of Goods Sold Contribution Margin Less: Fixed Costs Faced General and Administrative Expenses Fixed Manufacturing Overhead Expenses Net Operating Income

Answer 1

Answert 1) CRYSTAL COLD COORLERS INC. Full Absorplion costing Income stalement.. particulars Amount Amount sales [2400 *$335] $ 804,000 Less - Cost of goods sold: Beginning inventory cost of goods Manufactured : Direct Material (1000 x $55) $165,000 Direct Labor G000 x $ 50) $ 150,000 Variable manufacturing, overhead $39,000 (3000x $13) Fixed Manufacturing overhead uses $195.000 (3000 x $65) cost of goods available for Sale 4549,000) Ending inventory coox(55+50+1246 $109,800 cost of goods sold. $439200) - Gross Margin $364,800 Less. Non mancfaclaxing expenses Variable selling and administrative expense $31,200 Fixed general and administrative expenses $ 60,000 Total selling generaland administealine $91,200 ex penses Net Income. $273.600

2) CRYSTAL COLD COORLERS INC. Variable corting Income statement particulars Amount Amount Sales (2H00 x $335) $804,000 Lessé variable cost of goods edel:- Beginning inventory, variable Manufacturing cost Direck Maleoial 73000x555) $165,000 Direct Labox (3000x550) $ 150,000 variable Manufacturing overhead (3000x$13) $ 39000 cost of goods available for Sale $354,000 ending inventory Boo 55+50+13)] $70.800 Variable cost 7 goods sod T($283200) L233- vestiable selling and administrative expenses K$ 31,200) Contribution Margin $489,6001 Less: Fixed cost :- fized manufacturing overhead $195,000 (3000x$65) Fixed general and administrative expenses $ 60,000 Total fixed expeuses Net Income | $234,600 $2550001