Variable Costing -soalan kuiz 2

Kuiz 2

2. a. The variable costing income statement:

Sales (10,000 units × $20 per unit)...........			$200,000
Less variable expenses:
Variable cost of goods sold:
Beginning inventory............................	$ 0
Add variable manufacturing costs (12,000 units × $10 per unit)............	120,000
Goods available for sale.......................	120,000
Less ending inventory (2,000 units × $10 per unit)..............	20,000
Variable cost of goods sold.....................	100,000
Variable selling expense (10,000 units × $2 per unit)................	20,000		120,000
Contribution margin................................			80,000
Less fixed expenses:
Fixed manufacturing overhead...............	48,000
Fixed selling and administrative..............	25,000	*	73,000
Net operating income..............................			$ 7,000

*	$45,000 ÷ (10,000 units x $2) = $25,000

b. The reconciliation of absorption and variable costing follows:

	Variable costing net operating income.........	$ 7,000
	Add: Fixed manufacturing overhead deferred in inventory under absorption costing (2,000 units × $4 per unit)......................	8,000
	Absorption costing net operating income.....	$15,000

*	$48,000 ÷ 12,000 units produced = $4 per unit