On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units...

   

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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: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 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 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income $1,620,000 (324,000) $210,000 45,000 $2,160,000 (1,296,000) $864,000 (96,000) $768,000 (255,000) $513,000 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing 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: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 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 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income $1,620,000 (324,000) $210,000 45,000 $2,160,000 (1,296,000) $864,000 (96,000) $768,000 (255,000) $513,000 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing

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SOLUTION Based on the given information the income statement for Barnard Inc using the variable costing concept is as follows Barnard Inc Variable Costing Income Statement For the Year Ended March 31 20Y1 Sales 2160000 Variable cost ... View the full answer