q production $ 30,000 COGS unitary

q sold $ 25,000 absorption variable

p unit $ 30 DM, DL, VMoH $ 10 $ 10
MoH $ 5 $ -
variable cost per unit: total $ 15 $ 10
DM, DL, VMoH $ 10
selling & administrative $ 3

fixed cost per year:

MoH $ 150,000
selling & administrative $ 100,000
 income statement (absorption costing)
sales $ 750,000
less: COGS $ -375,000
gorss margin $ 375,000
Less: selling & administrative expenses
variable: $ 75,000
fixed $ 100,000 $ -175,000
NOI $ 200,000
 Income statement (varibale costing)
sales $ 750,000
Less: variable expenses
variable COGS $ 250,000
Variable sales & administrative $ 75,000 $ -325,000
contribution margin $ 425,000
Less: fixed expenses
MoH $ 150,000
Fixed sales & administrative $ 100,000 $ -250,000
NOI $ 175,000
q production $ 20,000.00 COGS unitary
q sold $ 25,000.00 absorption variable
q beg. Inventory $ 5,000.00 DM, DL, VMoH $ 10.00 $ 10.00
p unit $ 30.00 MoH $ 7.50 $ -
total $ 17.50 $ 10.00
variable cost per unit:
DM, DL, VMoH $ 10.00
selling & administrative $ 3.00

fixed cost per year:

MoH $ 150,000.00
selling & administrative $ 100,000.00
 FIFO 2nd year

income statement (absorption costing)

sales $ 750,000.00
less: COGS $ -425,000.00
gorss margin $ 325,000.00
Less: selling & administrative expenses
variable: $ 75,000.00
fixed $ 100,000.00 $ -175,000.00
NOI $ 150,000.00
 Income statement (varibale costing)
sales $ 750,000.00
Less: variable expenses
variable COGS $ 250,000.00
Variable sales & administrative $ 75,000.00 $ -325,000.00
contribution margin $ 425,000.00
Less: fixed expenses
MoH $ 150,000.00
Fixed sales & administrative $ 100,000.00 $ -250,000.00
NOI $ 175,000.00