On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 3,700 units
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Question:
On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 3,700 units and sold 3,200 units. The following income statement was prepared, based on the variable costing concept:
Johnson Industries, Inc. Variable Costing Income Statement For the Year Ended June 30, 2016 | ||||
Sales | $1,728,000 | |||
Variable cost of goods sold: | ||||
Variable cost of goods manufactured | $958,300 | |||
Less inventory, June 30 | 129,500 | |||
Variable cost of goods sold | 828,800 | |||
Manufacturing margin | $899,200 | |||
Variable selling and administrative expenses | 208,000 | |||
Contribution margin | $691,200 | |||
Fixed costs: | ||||
Fixed manufacturing costs | $440,300 | |||
Fixed selling and administrative expenses | 137,600 | 577,900 | ||
Income from operations | $113,300 |
Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
Variable costing | $ |
Absorption costing | $ |
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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