Copy of Boston Beverage (Absorption)

Copy of Boston Beverage (Absorption) - Product Cost Fixed...

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VARIABLE COSTING -- LIFO YEAR 2 YEAR 3 Quantity Price/Cost Quantity Price/Cost Sales $34,400,000 2,150,000 $16 $55,100,000 2,900,000 $19 Beginning Inventory (From Year 1) $800,000 100,000 $8 $800,000 100,000 $8 (From Year 2) $3,150,000 350,000 $9 Production $22,500,000 2,500,000 $9 $25,000,000 2,500,000 $10 Available For Sale $23,300,000 2,600,000 $28,950,000 2,950,000 Less: Ending Inventory (From Year 1) $800,000 100,000 $8 $400,000 50,000 $8 (From Year 2 $3,150,000 350,000 $9 Variable - COGS $19,350,000 2,150,000 $28,550,000 2,900,000 $6,450,000 2,150,000 $3 $11,600,000 2,900,000 $4 Variable - Total $25,800,000 $40,150,000 Contribution Margin $8,600,000 $14,950,000 Less: Fixed Costs Production $5,000,000 $5,250,000 $1,900,000 $2,000,000 Operating Income (EBIT) $1,700,000 $7,700,000 ABSORPTION COSTING -- LIFO YEAR 2 YEAR 3 YEAR 1 Product Cost - Variable $9.00 $10 $8.00
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Unformatted text preview: Product Cost - Fixed Cost Per Unit $2.00 $2.10 $1.80 Product Cost Per Unit $11.00 $12.10 $9.80 Sales $34,400,000 2,150,000 $16.00 $55,100,000 2,900,000 $19.00 Beginning Inventory (From Year 1) $980,000 100,000 $9.80 $980,000 100,000 $9.80 (From Year 2) $3,850,000 350,000 $11.00 Production - Variable Cost $22,500,000 2,500,000 $9.00 $25,000,000 2,500,000 $10.00 Production - Fixed Cost $5,000,000 $5,250,000 Available For Sale $28,480,000 2,600,000 $35,080,000 2,950,000 Less: Ending Inventory (From Year 1) $980,000 100,000 $9.80 $490,000 50,000 $9.80 (From Year 2) $3,850,000 350,000 $11.00 COGS $23,650,000 2,150,000 $34,590,000 2,900,000 Gross Profit $10,750,000 $20,510,000 Less: S.G.&A. Variable $6,450,000 2,150,000 $3 $11,600,000 2,900,000 $4 Fixed $1,900,000 $2,000,000 Operating Income (EBIT) $2,400,000 $6,910,000...
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This note was uploaded on 11/08/2011 for the course ECON 102 taught by Professor Smith during the Spring '11 term at Saddleback.

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