AC2720 Wk3 Exercise - Fixed costs Fixed manufacturing costs...

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Problem 1 Part 1: Beginning Inventory + 2014 Production = 2014 Sales + Ending 2014 production = Income Statement for th for the Year
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Variable versus absorption costing g Inventory he Zwatch Company, Variable Costing Ended December 31, 2014
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Problem 2
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Absorption and variable costing Cost of goods sold: $4,000,000 600,000 Gross margin Operating costs: Fixed operating Operating income Answwer: 1. Osawa’s 2014 operating income using absorption costing is $440,000 Variable costs: $4,000,000 2,400,000 Contribution margin Fixed costs:
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Unformatted text preview: Fixed costs: Fixed manufacturing costs Fixed operating costs Operating income Answwer: 2. Osawa’s 2014 operatng income using variable costng is $1,280,000 Absorption Costing : Revenues a Variable manufacturing costs b Allocated fixed manufacturing costs c Variable operating d Variable Costing : Revenues a Variable manufacturing cost of goods sold b Variable operating costs c $4,800,000 2,040,000 1200000 400,000 $440,000 $4,800,000 2,520,000 2,280,000 400000 600,000 $1,280,000...
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