Revenues 200,000

Deduct: Variable Costing (MFG & Non-MFG):

Beginning Finished Inventory 0.00
Variable MFG Costs:
Direct Material 45,000
Direct Manufacturing Labour 5,000
Manufacturing Overhead 15,000
TOTAL Variable MFG Costs 65,000
Cost Of Goods Available For Sale 65,000
Deduct: Ending Finished Inventory 13,000
Variable MFG Cost Of Goods Sold 52,000
Variable Non MFG Costs 4,000
TOTAL Variable Costs 56,000
Contribution Margin 144,000
Deduct: Fixed Costs
Fixed Conversion (8,000)
Adminstrivative & Selling Costs (All Fixed) (16,000)
Operating Income = Contribution Margin - Fixed Costs 120,000
220,000

13,000

50,000
5,000
15,000
70,000
83,000
7,000
76,000
4,000
80,000
140,000

(8,000)
(16,000)
116,000