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  • Bab 9 - Inventory Costing

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    Udara Xes
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    The document provides income statements for Bigscreen Corporation for January, February, and March using both variable and absorption costing methods. Under variable costing, the company's contribution margin was $700,000 in January, $800,000 in February, and $1,500,000 in March. Operating income was $160,000, $260,000, and $960,000 respectively for the three months. Absorption costing reported gross margins of $840,000, $880,000, and $1,900,000 and operating income of $280,000, $260,000, and $860,000 for January, February, and March respectively.

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    BAB 9 - INVENTORY COSTING

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    The document provides income statements for Bigscreen Corporation for January, February, and March using both variable and absorption costing methods. Under variable costing, the company's contribution margin was $700,000 in January, $800,000 in February, and $1,500,000 in March. Operating income was $160,000, $260,000, and $960,000 respectively for the three months. Absorption costing reported gross margins of $840,000, $880,000, and $1,900,000 and operating income of $280,000, $260,000, and $860,000 for January, February, and March respectively.

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    © All Rights Reserved
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    16 views2 pages

    Bab 9 - Inventory Costing

    Uploaded by

    Udara Xes
    The document provides income statements for Bigscreen Corporation for January, February, and March using both variable and absorption costing methods. Under variable costing, the company's contribution margin was $700,000 in January, $800,000 in February, and $1,500,000 in March. Operating income was $160,000, $260,000, and $960,000 respectively for the three months. Absorption costing reported gross margins of $840,000, $880,000, and $1,900,000 and operating income of $280,000, $260,000, and $860,000 for January, February, and March respectively.

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    of 2

    H.

    9-18
    BIGSCREEN CORPORATION
    INCOME STATEMENT
    FOR MONTH ENDED JAN31, FEB & MARCH
    VARIABLE COSTING
    JANUARI FEBRUARI MARET
    SALES REVENUE @ $2.500 $ 1.750.000 $ 2.000.000 $ 3.750.000
    VARIABLE COST OF GOOD SOLD :
    BEGINNING INVENTORY $ - $ 270.000 $ 270.000
    VARIABLE COST @ $900 $ 900.000 $ 720.000 $ 1.125.000
    $ 900.000 $ 990.000 $ 1.395.000
    ENDING INVENTORY $ 270.000 $ 270.000 $ 45.000
    VARIABLE COST OF GOOD SOLD $ 630.000 $ 720.000 $ 1.350.000
    VARIABLE MARKETING EXPENSE $ 420.000 $ 480.000 $ 900.000
    $ 1.050.000 $ 1.200.000 $ 2.250.000
    CONTRIBUTION MARGIN $ 700.000 $ 800.000 $ 1.500.000
    OPERATING EXPENSE :
    FIXED MANUFACTURING COST $ 400.000 $ 400.000 $ 400.000
    FIXED OPERATING EXPENSE $ 140.000 $ 140.000 $ 140.000
    $ 540.000 $ 540.000 $ 540.000
    OPERATING INCOME $ 160.000 $ 260.000 $ 960.000

    BIGSCREEN CORPORATION
    INCOME STATEMENT
    FOR MONTH ENDED JAN31, FEB & MARCH
    ABSORPTION COSTING
    JANUARI FEBRUARI MARET
    SALES REVENUE @ $900 $ 1.750.000 $ 2.000.000 $ 3.750.000
    COST OF GOOD SOLD :
    BEGINNING INVENTORY $ - $ 390.000 $ 390.000
    VARIABLE COST @ $900 $ 900.000 $ 720.000 $ 1.125.000
    ALLOCATED FIXED FOH $ 400.000 $ 320.000 $ 500.000
    COST OF GOOD AVAILABLE FOR SALE $ 1.300.000 $ 1.430.000 $ 2.015.000
    ENDING INVENTORY $ 390.000 $ 390.000 $ 65.000
    ADJUSTMENT FOR VOLUME VARIANCE $ - $ 80.000 $ 100.000
    COST OF GOOD SOLD $ 910.000 $ 1.120.000 $ 1.850.000
    GROSS MARGIN $ 840.000 $ 880.000 $ 1.900.000
    OPERATING EXPENSE :
    VARIABLE MARKETING EXPENSE $ 420.000 $ 480.000 $ 900.000
    FIXED OPERATING EXPENSE $ 140.000 $ 140.000 $ 140.000
    $ 560.000 $ 620.000 $ 1.040.000
    OPERATING INCOME/LOSS $ 280.000 $ 260.000 $ 860.000

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