Prepare a contribution format income statement for the month using variable cost

Question

Prepare a contribution format income statement for the month using variable costing. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Input all amounts as positive values. Omit the "$" sign in your response.)

Selling price $ 109   Units in beginning inventory 540   Units produced 6,950   Units sold 6,910   Units in ending inventory 580   Variable costs per unit:      Direct materials $ 39.2      Direct labor $ 26.8      Variable manufacturing overhead $ 2.4      Variable selling and administrative $ 7.4   Fixed costs:      Fixed manufacturing overhead $ 45,870      Fixed selling and administrative $ 82,100

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Sales (6910*109) 753190
Less Variable Expenses

Variable Cost of Goods Sold 472644
Variable Selling Expenses 51134 523778 Contribution Margin
229412 Less Fixed Expenses

Fixed manufacturing overhead 45870
Fixed selling and administrative 82100 127970 Net Operating Income
101442

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