Explore BrainMass
Share

Explore BrainMass

  1. Business
  2. Accounting
  3. Financial Accounting & Bookkeeping
  4. The Financial Statements
  5. Income Statement
  6. 325979

Contribution Income Statement

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.

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.

$2.19

Related BrainMass Content

St Jude Financial Statement

... How are contributions recorded ... Are there circumstances when financial statements
can quantify volunteers ... Can financial statement users of not-for-profit hospitals ...