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DATA INPUT
Sales Price 30$
Direct Material 10$
Direct Labor 4$
Variable Overhead 6$
Budgeted Fixed Overhead 600,000$
Actual Production (containers) 150,000
Units Sold 125,000
Selling & Administrative Expenses
Fixed $100,000 (for the year)
Variable $2 (per container sold)
SOLUTION
1.
2.a
Sales Revenue 3,750,000$
Less: Cost of Goods Sold at standard absorption cost of $24 per unit 3,000,000
2.b
Sales Revenue 125000 units sold at $30 per unit 3,750,000$
Less: Variable Manufacturing costs at standard variable cost of $20 per unit 2,500,000
VARIABLE-COSTING OPERATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 20x4
SKINNY DIPPERS, INC.
ABSORPTION-COSTING OPERATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 20x4
SKINNY DIPPERS, INC.
Less: Variable manufacturing costs under variable costing 2,500,000
Subtotal 500,000$
Less: Fixed Manufacturing overhead as period expense
under variable costing 600,000
