on august 31, the end of the first year of operations, during which 18,000 units
ID: 2446675 • Letter: O
Question
on august 31, the end of the first year of operations, during which 18,000 units were manufactured and 13,500 units were sold, olympic inc. prepared the following income statement based on the variable costing concept: olympic inc. income statement for year ended august 31, 20--
sales $297,000
variable cost of goods sold: variable cost of goods manufactured $288,000
less ending inventory 72,000
variable cost of goods sold 216,000
manufacturing margin $ 81,000
variable selling and administrative expenses 40,500
contribution margin $ 40,500
fixed costs:
fixed manufacturing costs $ 12,000
fixed selling and administrative expenses 10,800 22,800
income from operations $ 17,700 ========
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Explanation / Answer
on august 31, the end of the first year of operations, during which 18,000 units
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