Explore BrainMass

Explore BrainMass

    Contribution Income Statement

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jackson Company had the following data (in thousands) for a given period. Assume there are no inventories.

    Direct labor $170
    Direct materials 210
    Variable indirect manufacturing 110
    Contribution margin 200
    Fixed selling and administrative expenses 100
    Operating income 10
    Sales 990

    Compute the (a) variable manufacturing cost of goods sold, (b) variable selling and administrative expenses, and (c) fixed indirect manufacturing costs.

    © BrainMass Inc. brainmass.com December 24, 2021, 8:55 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/contribution-income-statement-325979

    Solution Preview

    Compute the (a) variable manufacturing cost of goods sold.

    The variable manufacturing cost of goods sold includes direct labor, direct materials, and variable indirect manufacturing cost. Therefore,

    Direct labor $170
    Direct materials 210
    Variable indirect manufacturing 110
    Variable ...

    Solution Summary

    Jackson Company had the following data (in thousands) for a given period. Assume there are no inventories.

    Direct labor $170
    Direct materials 210
    Variable indirect manufacturing 110
    Contribution margin 200
    Fixed selling and administrative expenses 100
    Operating income 10
    Sales 990

    Compute the (a) variable manufacturing cost of goods sold, (b) variable selling and administrative expenses, and (c) fixed indirect manufacturing costs.

    $2.49

    ADVERTISEMENT