Unformatted text preview: overhead $ 20 Variable Selling costs $ 50 Variable period costs $ 50 $ 150 Fixed selling and administrative costs $ 20 Contribution margin $ 350 Income $ 320 Fixed manufacturing overhead $ 10 Fixed selling and administrative costs $ 20 Income $ 320 Income is the same under both because production=sales To do the inventory change effect to reconcile the income under the internal variable costing income statement and the absorption costing income statement. Income reported under variable costing $320 + Fixed manufacturing costs in ending Finished goods $0 -Fixed manufacturing costs in beginning Finished goods $0 = Income reported under absorption costing $320...
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This note was uploaded on 11/09/2011 for the course ACCT 3337 taught by Professor Staff during the Fall '08 term at University of Houston.
- Fall '08