Cost of Goods Manufactured, using Variable Costing and Absorption CostingOn March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on the variable costing concept:Barnard Inc.Variable Costing Income StatementFor the Year Ended March 31, 20Y1Sales $480,000 Variable cost of goods sold: Variable cost of goods manufactured$277,200 Inventory, March 31(46,200) Total variable cost of goods sold (231,000) Manufacturing margin $249,000 Total variable selling and administrative expenses (57,000) Contribution margin $192,000 Fixed costs: Fixed manufacturing costs$126,000 Fixed selling and administrative expenses39,000 Total fixed costs (165,000) Operating income $27,000 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.Variable costing$fill in the blank 1Absorption costing$fill in the blank 2

Given that, Barnard Inc. manufactured 1,800 units The variable cost of goods manufactured = $277200…

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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Cost of Goods Manufactured, using Variable Costing and Absorption Costing

On March 31, the end of the first year of operations, Barnard Inc., manufactured 1,800 units and sold 1,500 units. The following income statement was prepared, based on the variable costing concept:

Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1
Sales		$480,000
Variable cost of goods sold:
Variable cost of goods manufactured	$277,200
Inventory, March 31	(46,200)
Total variable cost of goods sold		(231,000)
Manufacturing margin		$249,000
Total variable selling and administrative expenses		(57,000)
Contribution margin		$192,000
Fixed costs:
Fixed manufacturing costs	$126,000
Fixed selling and administrative expenses	39,000
Total fixed costs			(165,000)
Operating income		$27,000

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Variable costing	$fill in the blank 1
Absorption costing	$fill in the blank 2

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