60.1K

Verified Solution

Link Copied!

In 2022 Brookes Inc. sold 55,000 units at a selling price of $44 per unit. The company manufactured 80,000 units. Variable manufacturing costs were $12 per unit manufactured. Fixed manufacturing costs amounted to $351,000. Variable marketing costs were $12 per unit sold, and the budgeted and actual fixed marketing costs were $40,000. Other fixed operating expenses amounted to $11,000. There was no beginning inventory.

Do not enter dollar signs or commas in the input boxes.

Calculate to two decimal places

a) Calculate the company's 2019 operating income using absorption costing.

Revenues

Cost of Goods Sold:

Beginning Inventory

Cost of Goods Manufactured

Less: Ending Inventory

Cost of Goods Sold

Gross Margin

Operating Expenses:

Marketing Costs

Other Fixed Operating Expenses

Total Operating Expenses

Operating Income

b) Calculate the company's 2019 operating income using variable costing.

Revenues

Variable Cost of Goods Sold

Beginning Inventory

Cost of Goods Manufactured

Less: Ending Inventory

Variable Cost of Goods Sold

Variable Marketing Costs

Contribution Margin

Operating Expenses:

Fixed Manufacturing Overhead Costs

Fixed Marketing Costs

Other Fixed Operating Expenses

Income from Operations

Answer & Explanation Solved by verified expert

See Answer