On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing concept:

Determine the unit cost of goods manufactured, based on

(a) The variable costing concept and 

(b) The absorption costing concept.

Transcribed Image Text:

Barnard Inc. Variable Costing Income Statement For the Month Ended March 31 $ 2,160,000 Sales..... Variable cost of goods sold: Variable cost of goods manufactured.. Inventory, March 31... Total variable cost of goods sold.. Manufacturing margin......... Total variable selling and administrative expenses. Contribution margin..... $1,620,000 (324,000) (1,296,000) $ 864,000 (96,000) $ 768,000 Fixed costs: $ 210,000 Fixed manufacturing costs .. Fixed selling and administrative expenses.. Total fixed costs..... Operating income... 45,000 (255,000) $ 513,000