Format of Income statement under Absorption costingSalesxxxxxLess: Cost of Goods Sold:Direct MaterialxxxDirect LaborxxxVariable Factory overhead xxxFixed Factory overhead xxxCost of Goods ManufacturedxxxxxAdd: Finished goods (at start)xxxTotal Finished goods availablexxxxxLess: Finished goods (at end)(xxx)COST OF GOODS SOLDxxxx
Adjustment of Fixed (over) / under applied Factory overheadxxx/(xx)
COST OF GOODS SOLD (Actual)(xxxxx)Gross ProfitxxxxLess: Marketing and administrativeExpenses(xxx)Operating Incomexxxx
Format of Income statement under Direct costingSalesxxxxxLess: Cost of Goods Sold (Variable):Direct MaterialxxxDirect LaborxxxVariable Factory overhead xxxVariable Cost of Goods ManufacturedxxxxxAdd: Finished goods (at start)xxxTotal Finished goods available at variable costxxxxxLess: Finished goods (at end)(xxx)COST OF GOODS SOLD (Variable)(xxxx)GROSS CONTRIBUTION MARGIN xxxxLess: Variable Marketing and administrativeExpenses(xxx)CONTRIBUTION MARGIN xxxxLess: Fixed Expenses:Fixed Factory overheadxxxFixed Marketing and Adminstrative expensesxxx(xxx)OPERATING INCOMExxxxxx
3rd. Quarter
FG (at start) 40,000Add: Produciton (100,000 x 80%) 80,000Total FG available 120,000Less: Sold units (100,000 x 80%) (80,000)FG (at end) 40,000
4th Quarter"
FG (at start) 40,000Add: Produciton (100,000 x 50%) 50,000Total FG available 90,000Less: Sold units (100,000 x 80%) (80,000)FG (at end) 10,000
1st Quarter:
FG (at start) 10,000Add: Produciton (100,000 x 110%) 110,000Total FG available 120,000Less: Sold units (100,000 x 80%) (80,000)FG (at end) 40,000
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Absorption & Direct Costing
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| Category: | Uncategorized. |
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| Upload Date: | 11/25/2009 |
| Copyright: | Attribution Non-commercial |
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