Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: S114 Selling price Units in beginning inventory 0 Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct Labor Variable manufacturing overhead S3 Variable selling and administrative S4 Fixed costs: fixed manufacturing overhead 98,800 Fixed selling & administrative $57,600 3,800 3,600 200 S38 S22 a. What is the total contribution margin?$ b. What is the gross margin?$ c. What is the net operating income using variable costing? $ d. What is the net operating income using absorption costing? $

Answer 1

Manufacturing company-Absorption costing Sales ( 3600 114) 410400 Cost of Goods Sold Direct mat. 3600 * 38) Direct lab. (3600 22) Var. OH (3600 3) Fixed Manufacturing Overhead9 136800 79200 10800 93600 (98800/ 38003600 Total Gross Profit Less:- Selling costs Varaiable 3600 4 Fixed Net income 320400 90000 Answerb 14400 57600 18000 Answerd Variable Costin Sales (3600 114) Less:- Variable costs Direct mat. 3600 * 38) Direct lab. ( 3600 * 22) 410400 Var. OH (3600 3) Varaiable Selling costs (3600 *4 Total 136800 79200 10800 14400 241200 Contribution Margin Fixed Mfg. OH Fixed S and adm. Ex Net Income/ (loss) 169200 Answer a 98800 57600 12800 Answer c