Knowledge Check 01 Decide how each cost is treated on an income statement prepared using the variable costing approach. Using the dropdown boxes, indicate whether each cost item is treated as a period cost or product cost. 1. Direct labor 2. Fixed manufacturing overhead 3. Variable manufacturing overhead 4. Fixed selling and administrative expenses 5. Variable selling and administrative expenses Knowledge Check 01 January Beginning inventory Units produced Units sold Ending inventory Excerpt from Wallis Corporation Selling price Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses 0 500 400 100 What is the company's contribution margin for January? $200 $13,200 $26,800 $40,000 Per Unit Per Month $ 100 30 20 10 7 $ 10,000 3,000 < Prev 4 5 of 10 Next > Knowledge Check 01 January Beginning inventory Units produced Units sold Ending inventory Excerpt from Wallis Corporation Selling price Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses 0 500 400 100 Per Unit Per Month $ 100 30 20 10 7 $ 10,000 3,000 What is the cost of goods sold for the month of January using the absorption costing method? $24,000 $30,000 $32,000 $40,000