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Given Beginning Inventory 9000 Actual Production 16000 Units Sold 20000 Ending Inventory 5000 Production Capacity 20000 Selling price $125. Variable Manufacturing Cost $320,000. Fixed Manufacturing Cost $60,000. Total Fixed Selling and Admin Expense $22,500. Total l Variable Selling and Admin cost $10. Variable manuf. cost (^) $20.00 produced Fixed manuf cost per unit $3.00 capacity Inventoriable Cost per unit $23. Revenue $2,500, COGS: Beginning inventory $207, Variable manuf cost $320,000 produced Allocated fixed manuf cost $48,000 produced Cost of goods available for sale $575, Deduct ending inventory -$115,000 ending inventory Adjustment for PVV $12,000 difference actual produced COGS -$472, Gross margin $2,028, Variable selling and administrative costs sold -$200, Fixed selling and administrative costs capacity -$22, Operating income $1,805, OI Diffrerence -$12,000. Validate -$12,000.00 (Units Produced - Units Sold) x Fixed Manuf. Cost per unit atau $12,000.00 (Beg. Inventory - End Inventory) x Fixed Manuf. Cost per unit Rangkuman: Semua account yang ada tulisan "inventory" di kali sama inventoriable cost Kalau dikasih tau semua harga per unitnya Var. Manuf Cost x Actual Production Unit Fix. Manuf Cost x Actual Production Unit Absorption Costing Fix. Manuf Cost x Capacity Production Variable Costing Var. Non Manuf. Cost x sold Fix. Non Manuf Cost x capacity Step 1. Calculate cost per unit using absorption costing Step 2 Income statement for 2020 using absorption costing Step 3 Validate your calculations
Variable manuf cost (^) $20 produced Inventoriable Cost per unit (^) $ Revenues $2,500, Variable COGS: Beginning inventory $180, Variable manuf cost $320, Cost of goods available for sale $500, Deduct ending inventory -$100, Variable COGS -$400, Variable selling and and administrative costs -$200, Contribution margin $1,900, Fixed manuf cost -$60, Fixed selling and administrative costs -$22, Operating income $1,817, nuf. Cost per unit Manuf. Cost per unit Step 1. Calculate cost per unit using variable costing Step 2 Income statement for 2020 using variable costing
Deduct End. Inventory -$4,549,818 $ COGS $17,210,182 $16,517, Gross margin $8,889,818 $1,782, Fixed Selling and administrative -$395,000 -$395, Operating income $8,494,818 $1,387, 2020 2021 Sales $26,100,000 $18,300, Variable COGS: Beginning inventory $0^ $3,128, Variable manuf cost $14,960,000^ $5,168, Cost of goods available for sale $14,960,000^ $8,296, Deduct ending inventory -$3,128,000^ $ Variable COGS -$11,832,000^ -$8,296, Contribution margin $14,268,000^ $10,004, Fixed manuf cost -$6,800,000^ -$6,800, Fixed selling and administrative -$395,000^ -$395, Operating income $7,073,000 $2,809, c. Explain why the income was different each year using the two methods. Show computations. 2020 difference (^) $1,421,818.18 $1,421,818.18 Production > Sales, OI favours absorption costi b. Income statement using variable costing
2021 difference (^) -$1,421,818 -$1,421,818.18 Production< Sales, OI variable costing is higher
oduction > Sales, OI favours absorption costing
oduction< Sales, OI variable costing is higher
