Determine the unit cost of goods manufactured

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Reference no: EM13341470

Cost of goods manufactured, using variable costing and absorption costing

On June 30, the end of the first year of operations, Johnson Industries, Inc., manufactured 4,900 units and sold 4,200 units. The following income statement was prepared, based on the variable costing concept:

Johnson Industries, Inc.
Variable Costing Income Statement
For the Year Ended June 30, 2013

Sales

Variable cost of goods sold:

 

$1,008,000

Variable cost of goods manufactured

$563,500

 

Less inventory, July 31

80,500

 

Variable cost of goods sold

 

483,000

Manufacturing margin

 

$525,000

Variable selling and administrative expenses

 

121,800

Contribution margin

 

$403,200

Fixed costs:

 

 

Fixed manufacturing costs

$259,700

 

Fixed selling and administrative expenses

79,800

339,500

Income from operations

 

$63,700

 

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

Reference no: EM13341470

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