Absorption Costing
SaleaLess: Cost Of Goods SoldDirect MaterialDirect Labor Variable FOHFixed FOHCost Of Goods ManufactueredAdd:Finished Goods OpeningTotal Finished Goods AvailableLess:Finished Goods EndingCost Of Goods SoldAdjustment of Fixed (over)/ under applied Factory overhear Gross ProfitCost Of Goods Sold (Actual)Less:Marketing and administrative ExpensesVariable marketing and admin. ExpensesFixed marketing and admin. ExpensesNet Income / Profit
Direct Costing
SaleaLess:Variable Cost Of Goods SoldDirect MaterialDirect Labor Variable FOHVariable Cost Of Goods ManufactueredAdd:Finished Goods OpeningTotal Finished Goods Available at variable costLess:Finished Goods EndingVariable Cost Of Goods SoldGROSS CONTRIBUTION MARGINLess:Variable Marketing and administrative ExpensesCONTRIBUTION MARGINLess:Fixed Expenses:Fixed Factory overheadFixed Marketing and administrative ExpensesOPERATING INCOME
SUMMER - 2007 or Ex -8 (MU)Required#1Total Fixed Manufacturing cost 200,000Budgeted Units 20,000Fixed Manufacturing Cost absorption rate(Rs.200,000/20,000 units) 10 per unitAmount of Fixed Manufacturing cost applied(12,000 units x Rs. 10) 120,000
Format of Income statement under Absorption costingSales (6,000 units x 80) 480,000Less: Cost of Goods Sold:Variable manufacturing cost (12,000 units x 30) 360,000Fixed Factory overhead (12,000 units x 10) 120,000Cost of Goods Manufactured 480,000Less: Finished goods (at end) (6,000 units x 40) (240,000)COST OF GOODS SOLD 240,000
(240,000)
Gross Profit
240,000
Less: Marketing and administrativeFixed Marketing and AdminOperating IncomeFormat of Income statement under Direct costingSales xxxxxLess: Cost of Goods Sold (Variable):Direct Material xxxDirect Labor xxxVariable Factory overhead xxxVariable Cost of Goods Manufactur xxxxxAdd: Finished goods (at start) xxxTotal Finished goods available at vaxxxxxLess: 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 overhead xxxFixed Marketing and Adminstrative xxx (xxx)
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Absorption Costing
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| Upload Date: | 11/25/2009 |
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