VAR COST Student Name Section Number 6 Data Section 7 100,000 80,000 $30 $14 $2 $630,000 $100,000 8 Actual production in units 9 Sales in units 10 Sales price per unit 11 Variable manufacturing costs per unit 12 Variable selling costs per unit 13 Fixed manufacturing costs 14 Fixed selling expenses 15 16 Answer Section: 17 Income statement: Absorption costing 18 19 Sales 20 Cost of goods sold: 21 Variable manufacturing costs 22 Fixed manufacturing costs 23 24 Total goods available for sale 25 Less ending inventory FORMULA1 FORMULA2 FORMULA3 FORMULA4 27 Cost of goods sold 28 29 Gross profit 30 Fixed selling expenses 31 Variable selling expenses FORMULAS FORMULA6 33 Operating income 35 Income statement: Variable costing 37 38 39 40 41 42 Sales Cost of goods sold: Variable manufacturing costs Less ending inventory FORMULA7 FORMULA8 Variable cost of goods sold 44 45 Manufacturing margin Variable selling expenses FORMULA9 47 48 49 Contribution margin Fixed manufacturing costs Fixed selling expenses FORMULA10 51 Operating income