ASSESSMENT IN ABSORPTION AND VARIABLE COSTING JAZZMINE M.

DALANGPAN │ ACC 201

PROBLEM 1
REQUIREMENT A: UNIT PRODUCT COST UNDER VARIABLE COSTING
Direct Materials: 31.00
Direct Labor: 37.00
Variable Manufacturing Overhead: 2.00
Unit Product Cost: 70.00

REQUIREMENT B: CONTRIBUTION FORMAL INCOME STATEMENT (VARIABLE COSTING)

Sales: 374,400.00
(Less) Variable Cost:
Variable Cost of Goods Sold: 224,000.00
Variable Operating Expense: 22,400.00 246,400.00
Contribution Margin: 128,000.00
(Less) Fixed Cost:
Fixed Manufacturing Overhead: 112,200.00
Fixed Operating Expense: 6,400.00 118,600.00
Net Operating Income: 9,400.00

REQUIREMENT C: ABSORPTION COSTING NET OPERATING INCOME

Variable Costing Net Operating Income: 9,400.00
Fixed Manufacturing Overhead Costs:
Deferred from Inventory under
Absorption Costing
[(3,300.00 - 3,200.00) P 34.00] 3,400.00
Absorption Net Operating Income: 12,800.00

PROBLEM 2
REQUIREMENT A: CONTRIBUTION FORMAL INCOME STATEMENT (VARIABLE COSTING)
Sales: 910,200.00
(Less) Variable Cost:
Variable Cost of Goods Sold: 540,200.00
Variable Operating Expense: 29,600.00 569,800.00
Contribution Margin: 340,400.00
(Less) Fixed Cost:
Fixed Manufacturing Overhead: 235,600.00
Fixed Operating Expense: 88,800.00 324,400.00
Net Operating Income: 16,000.00

REQUIREMENT B: INCOME STATEMENT (ABSORPTION COSTING)

Sales: 910,200.00
(Less) Cost of Goods Sold: 769,600.00
Gross Margin: 140,600.00
(Less) Selling and Administration Expense: 118,400.00
Net Operating Income: 22,200.00

PROBLEM 3
REQUIREMENT A: CONTRIBUTION FORMAL INCOME STATEMENT (VARIABLE COSTING)
Sales: 694,400.00
(Less) Variable Cost:
Variable Cost of Goods Sold: 380,800.00
Variable Operating Expense: 61,600.00 442,400.00
Contribution Margin: 252,000.00
(Less) Fixed Cost:
Fixed Manufacturing Overhead: 183,000.00
Fixed Operating Expense: 61,600.00 244,600.00
Net Operating Income: 7,400.00

REQUIREMENT B: INCOME STATEMENT (ABSORPTION COSTING)

Sales: 694,400.00
(Less) Cost of Goods Sold: 548,800.00
Gross Margin: 145,600.00
(Less) Selling and Administration Expense: 123,200.00
Net Operating Income: 22,400.00

PROBLEM 4
REQUIREMENT A: ABSORPTION COSTING NET OPERATING INCOME LAST YEAR
Variable Costing Net Operating Income: 63,900.00
Fixed Manufacturing Overhead Costs:
Deferred from Inventory under
Absorption Costing
(900.00) P 3.00 2,700.00
Absorption Net Operating Income: 66,600.00