Question

VitaSportVitaSport produced 14 comma 00014,000 cases of powdered drink mix and sold 13 comma 00013,000 cases in AprilApril 20182018. The sales price was $ 22$22​, variable costs were $ 14$14 per case ​($ 10$10 manufacturing and $ 4$4 selling and​ administrative), and total fixed costs were $ 80 comma 000$80,000 ​($ 56 comma 000$56,000 manufacturing overhead and $ 24 comma 000$24,000 selling and​ administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable​ costing:

Answer 1

Answer-

VitaSport
Income statement (Using variable costing method)
For the month ended April 30
Particulars			Amount
			$
Sales (a)	13000 units*$22 per unit		286000
Less:- Variable cost of goods sold (b)			130000
Variable cost of goods available for sale	14000 units*$10 per unit	140000
Less:- Closing inventory	1000 units*$10 per unit	10000
Gross contribution margin C= a-b			156000
Less:-Variable selling & administrative exp.	13000 units*$4 per unit		52000
Contribution margin			104000
Less:- Fixed costs
Manufacturing overhead			56000
Selling & administrative exp.			24000
Net Income			24000