Use any numbers in this problem:
Clifton Company, which has only one product, has provided the following data concerning its most recent month of operations:
Units in beginning inventory
Units in ending inventory
Variable costs per unit:
Variable manufacturing overhead
Variable selling and administrative
Fixed manufacturing overhead
Fixed selling and administrative
a. The total contribution margin for the month under the variable costing approach is:
b. The total gross margin for the month under the absorption costing approach is:
c. When production exceeds sales, the net operating income reported under absorption costing generally will be:
c. When sales exceed production, the net operating income reported under variable costing generally will be:© BrainMass Inc. brainmass.com October 15, 2018, 4:27 am ad1c9bdddf - https://brainmass.com/business/income-statement/87852
Dear student ,
Solution to your problem is developed on the basis of assumed data and provided herewith in a separate excel file in the ...
Solution to your problem is developed on the basis of assumed data and provided herewith in a separate excel file in the following parts.
1 Data used in the problem
2 Statement of unit cost analysis under Variable and absorption costing.
3 Income statement under Absorption costing for showing contribution margin & net operating income.
4 Income statement under Variable costing for showing contribution margin & net operating income.
5 Notes for conceptual background.
6 Reconciliation of Variable and Absorption costing: