C Home Chegg.com progress faise Cest of Goods Manufactured, Jing Variable Costin

Question

C Home Chegg.com progress faise Cest of Goods Manufactured, Jing Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frarkenreiter Inc., manufactured 1,600 units and sold 1,400 units. The following income statement was prepared, based on the variable costing concept Inc. Variable Costing Income Statement Ended December 31, $658,000 Vaniable cost of goods sold Variable cost of goods manufactured Inventory, December 3 Total variable cost of goods sold 36,600 45.200 Mandfacturing margin Total variable sefing and administrative experses Contribution margin 341,600 $263,200 Flxed manufacturing costs Faed seling and administraive expenser Total fxed costs 164,800 53.200 228,000 ncome from operaions 45,200 Oetermine the unt cost of goods manufactured, based on (a) the vaniable costing concest and (b) the absorption costing concept Previoust 20

Explanation / Answer

unit cost of goods manufactured:

note:

unit cost of goods manufactured under variable costing = variable cost of goods manufactured / total units manufactured

=>$361,600 / 1,600 units

=>$226. per unit

unit cost of goods manufactured under absorption costing = (variable cost of goods manufactued + fixed manufacturing cost) / units manufactured

=>($361,600 + $164,800) / 1,600 units

=>$526,400 / 1600

=>$329 per unit.

variable costing $226 absorption costing $329

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.