Variable Costing April Revenues 8,400,000
Variable Costing April Revenues 8,400,000
2017
Operating income variable costing 1,250,000
Operating income absoption costing 1,850,000
Diff 600,000
= FMC diff 1,190,000 $135*8,000-$135*6,000
Selling price $ 24,000
VCM per unit $ 10,000
VNMC per unit $ 3,000
FMC $ 2,000,000 $ 4,000
FNMC $ 600,000
2018
3,120,000
2,640,000
(480,000)
8,000-$135*6,000 (202,500) $135*5,000-$135*6,500
FMC per unit
35*5,000-$135*6,500
Jan feb
Beginning inventory - 100
Production 1,400 1375
Sales 1,300 1375
Ending inventory 100 100
*$135-6,000*$135
$ 350 $ 356.36
Feb Mar
4,812,500 5,092,500
130,000 $ 130,000
$ 1,306,250 $ 1,358,500
$ 481,250 $ 500,500
1,917,500 $ 1,989,000
$ 130,000 $ 97,500
1,787,500 $ 1,891,500
3,025,000 3,201,000
$ 996,875 $ 1,036,750
$ 120,000 $ 120,000
1,908,125 2,044,250
9.21 9.23 9.25
Jan
Beginning inventory 100,000
Production 350,000
Sales 400,000
Ending inventory 50,000
*$135-6,000*$135
$ 350 #DIV/0!
Feb Mar
4,812,500 5,092,500
65,000,000 $ 130,000
$ - $ -
$ - $ -
65,000,000 $ 130,000
$ 130,000 $ 97,500
64,870,000 $ 32,500
(60,057,500) 5,060,000
$ - $ -
$ 120,000 $ 120,000
(60,177,500) 4,940,000