An asterisk (*) will appear to the right of an incorrect entry.
a.
Sales (96,000 units)
Variable cost of goods sold:
Variable cost of goods manufactured
Less ending inventory (24,000 units)
Variable cost of goods sold
Manufacturing margin
Variable selling and administrative expenses
Contribution margin
Fixed costs:
Fixed manufacturing costs
Fixed selling and administrative expenses
Income from operations
Supporting calculations:
Variable cost of goods manufactured:
Total cost of goods manufactured
Fixed manufacturing costs
Variable cost of goods manufactured
Ending inventory:
Variable cost of goods manufactured
Units manufactured
Variable cost per unit
x Number of units remaining
Ending inventory
Fixed selling and administrative expenses:
Total selling and administrative expenses
Variable selling and administrative expenses
Fixed selling and administrative expenses
b.
Absorption costing income from operations
Variable costing income from operations
Difference
Reconciliation:
Unit change in inventory
Fixed overhead per unit
Income from operations difference
RHYS COMPANY
Income Statement – Variable Costing
For the Month Ended July 31, 2014
Exercise 19(4)-27
Name:
Section:
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An asterisk (*) will appear to the right of an incorrect entry.
a.
Sales (96,000 units) 4,440,000$
Variable cost of goods sold:
Variable cost of goods manufactured 2,988,000$
b.
Exercise 19(4)-27
Name:
Solution
Section:
Income Statement – Variable Costing
For the Month Ended July 31, 2014
ON
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Instructions
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RHYS COMPANY