Method Comparison bsorption Statement Absorption Costing Income Statement For the Year Ended December 31 $1,125,000.00 Sales 2 Cost of goods sold: Beginning inventory Cost of goods manufactured Ending inventory $0.00 840,000.00 (210,000.00) Total cost of goods sold 630,000.00 1 Gross profit $495,000.00 275,000.00 Selling and administrative expenses Income from operations $220,000.00 Tinlowing the eyamnles on the Ahsamtion Statement and Variable Statement panels, recompute income from operatiom Variable Statement For the Year Ended December 31 Sales $1,125,000.00 $0.00 Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory Total variable cost of goods sold 600,000.00 (150,000.00 5 1 Manufacturing margin 450,000.00 $675,000.00 210,000.00 $465,000.00 & Variable selling and administrative expenses 9 Contribution margin 10 Fixed costs: 11 12 Fixed manufacturing costs Fixed selling and administrative expenses 000 15 Total fixed costs 14 Income from operations Manufacturing Decisions variable costs, unit sales price, and the sales levels are the same at both production levels Shaded cells have feedback Original Production Level-Absorption $220,000 Income From Operations Original Additional Production 10,000 s Level-Variable Units-Absorption $160,000/ Additional 10,000 Units-Variable C Points: 2 Feedback Check My Work Following the examples on the Absorption Statement and Variable Statement panels, recompute income from operations under the absorptio and variable cost methods, given that the additional units are manufactured. Don't forget that fixed costs will remain the same at any product odcasts Total xed costs 305.000.00 Method Comparison bsorption Statement Absorption Costing Income Statement For the Year Ended December 31 $1,125,000.00 Sales 2 Cost of goods sold: Beginning inventory Cost of goods manufactured Ending inventory $0.00 840,000.00 (210,000.00) Total cost of goods sold 630,000.00 1 Gross profit $495,000.00 275,000.00 Selling and administrative expenses Income from operations $220,000.00 Tinlowing the eyamnles on the Ahsamtion Statement and Variable Statement panels, recompute income from operatiom Variable Statement For the Year Ended December 31 Sales $1,125,000.00 $0.00 Variable cost of goods sold: Beginning inventory Variable cost of goods manufactured Ending inventory Total variable cost of goods sold 600,000.00 (150,000.00 5 1 Manufacturing margin 450,000.00 $675,000.00 210,000.00 $465,000.00 & Variable selling and administrative expenses 9 Contribution margin 10 Fixed costs: 11 12 Fixed manufacturing costs Fixed selling and administrative expenses 000 15 Total fixed costs 14 Income from operations Manufacturing Decisions variable costs, unit sales price, and the sales levels are the same at both production levels Shaded cells have feedback Original Production Level-Absorption $220,000 Income From Operations Original Additional Production 10,000 s Level-Variable Units-Absorption $160,000/ Additional 10,000 Units-Variable C Points: 2 Feedback Check My Work Following the examples on the Absorption Statement and Variable Statement panels, recompute income from operations under the absorptio and variable cost methods, given that the additional units are manufactured. Don't forget that fixed costs will remain the same at any product odcasts Total xed costs 305.000.00