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Business, 16.04.2020 03:34 pattington
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $9,600,000 Variable cost of goods sold: Variable cost of goods manufactured $5,376,000 Inventory, December 31 (336,000) Total variable cost of goods sold 5,040,000 Manufacturing margin $4,560,000 Total variable selling and administrative expenses 1,150,000 Contribution margin $3,410,000 Fixed costs: Fixed manufacturing costs $1,664,000 Fixed selling and administrative expenses 890,000 Total fixed costs 2,554,000 Income from operations $ 856,000 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.
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Cost of Goods Manufactured, using Variable Costing and Absorption Costing On December 31, the end of...
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