Answer:
Unit Variable cost of goods manufactured = $ 182
Unit Cost of Goods Manufactured = $ 266
Explanation:
Variable Costing requires that the manufacturing variable costs treated as product costs and manufacturing fixed costs to be treated as period costs. Where as in absorption costing all manufacturing fixed and variable costs are treated as product costs .
Variable Costing
Variable cost of goods manufactured $1,055,600
No of units = 5,800
Unit Variable cost of goods manufactured= $1,055,600/ 5800 = $ 182
<em>Fixed Mfg costs are added in the absorption costing.</em>
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Absorption Costing
Cost of Goods Manufactured= Variable cost of goods manufactured +Fixed manufacturing costs =$1,055,600+ $487,200 = $ 1542800
No of units = 5,800
Unit Cost of Goods Manufactured=$ 1542800/5800= $ 266
Given
Barnard Inc.
Variable Costing Income Statement
For the Year Ended March 31, 20Y1
Sales $1,900,000
Variable cost of goods sold:
Variable cost of goods manufactured $1,055,600
Inventory, March 31 (145,600)
Total variable cost of goods sold (910,000)
Manufacturing margin $990,000
Total variable selling and administrative expenses (230,000)
Contribution margin $760,000
Fixed costs:
Fixed manufacturing costs $487,200
Fixed selling and administrative expenses 150,000
Total fixed costs (637,200)
Operating income $122,800
