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6) You have been hired by TAASKS Inc. as Cost Accountant. TAASKSs CFO wants you to report the following data in three differ
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Answer #1

Requirement A:

Income Statement under Absorption costing
Particulars 2017($) 2018($) 2019($)
Revenue 800000 600000 1000000
Less COGS:
Beginning Inventory 0 0 165000
Variable manufacturing costs 410000 410000 410000
Fixed Manufacturing costs 250000 250000 250000
Less Closing inventory 0 -165000 0
COGS 660000 495000 825000
Less : Non-Manufacturing costs
Variable selling costs 70000 52500 87500
Fixed Selling costs 40000 40000 40000
Total Non Manufacturing costs 110000 92500 127500
Operating Income 30000 12500 47500

Requirement B:

Income Statement under Variable costing
Particulars 2017($) 2018($) 2019($)
Revenue 800000 600000 1000000
Less COGS:
Beginning Inventory 0 0 102500
Variable manufacturing costs 410000 410000 410000
Less Closing inventory 0 -102500 0
COGS 410000 307500 512500
Variable selling costs 70000 52500 87500
Contribution 320000 240000 400000
Less: Fixed costs
Fixed Manufacturing costs 250000 250000 250000
Fixed Selling costs 40000 290000 40000 290000 40000 290000
Operating income 30000 -50000 110000

Requirement C:

Income under Throughput costing
Particulars 2017 2018 2019
Sales 800000 600000 1000000
Direct Material Cost of goods sold
Opening Inventory 0 0 50000
Direct Materials 200000 200000 200000
Cost of Goods available for sale 200000 200000 250000
Less closing Inventory 0 -50000 0
Direct Material Cost of goods sold 200000 150000 250000
Throughput contribution 600000 450000 750000
other Manufacturing costs 460000 460000 460000
Marketing Costs 110000 92500 127500
Operating Income 30000 -102500 162500
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