During the most recent year, Osterman Company had the following data: 1. Calcula

Question

During the most recent year, Osterman Company had the following data:

1. Calculate the cost of goods sold under variable costing.

The cost of goods sold under the variable costing method is ______

2. Prepare an income statement using variable costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Units in beginning inventory --- Units produced 11,350 Units sold ($50 per unit) 9,400 Variable costs per unit: Direct materials $10 Direct labor $5 Variable overhead $3 Fixed costs: Fixed overhead per unit produced $4 Fixed selling and administrative expenses $138,500

1. Calculate the cost of goods sold under variable costing.

The cost of goods sold under the variable costing method is ______

2. Prepare an income statement using variable costing. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement.

Explanation / Answer

1)

2)

Number of units sold 9400 Direct Materials cost (@$10 per unit) $     94,000.00 Direct Labour per unit @$5 per unit $     47,000.00 Variablce overhead per unit @$3 per unit $     28,200.00 Cost of goods sold $ 1,69,200.00

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