12013 costofgoodsmanufacturedrequirement1

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Unformatted text preview: eco Company Income Statement For the Year Ended December 31, 2013 (in thousands) Revenue $300,000 Cost of goods sold: Beginning finished goods, Jan. 1, 2013 Cost of goods manufactured (Requirement 1) Cost of goods available for sale Ending finished goods, Dec. 31, 2013 Gross margin Operating costs: Marketing, distribution, and customer‐service General and administrative Operating income $ 18,000 136,000 154,000 23,000 131,000 $169,000 $ 93,000 29,000 122,000 $ 47,000 3‐32 (20‐30 min.) Effects on operating income, pricing decision. 1. Analysis of special order: Sales, 5,000 units $98 Variable costs: Direct materials, 5,000 units $48 $240,000 Direct manufacturing labour, 5,000 units $16 80,000 Variable manufacturing overhead, 5,000 units $8 40,000 Other variable costs, 5,000 units $7 35,000 Sales commission, flat rate 9,500 Total variable costs Contribution margin $490,000 404,500 $ 85,500 Note that the variable costs, except for commiss...
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