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Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan...

Absorption and Variable Costing Income Statements

During the first month of operations ended July 31, YoSan Inc. manufactured 9,900 flat panel televisions, of which 9,200 were sold. Operating data for the month are summarized as follows:

Sales $1,334,000
Manufacturing costs:
    Direct materials $673,200
    Direct labor 198,000
    Variable manufacturing cost 168,300
    Fixed manufacturing cost 89,100 1,128,600
Selling and administrative expenses:
    Variable $110,400
    Fixed 50,800 161,200

Required:

1. Prepare an income statement based on the absorption costing concept.

YoSan Inc.
Absorption Costing Income Statement
For the Month Ended July 31
Sales $
Cost of goods sold:
Cost of goods manufactured $
Inventory, July 31
Total cost of goods sold
Gross profit $
Selling and administrative expenses
Income from operations $

2. Prepare an income statement based on the variable costing concept.

YoSan Inc.
Variable Costing Income Statement
For the Month Ended July 31
Sales $
Variable cost of goods sold:
Variable cost of goods manufactured $
Inventory, July 31
Total variable cost of goods sold
Manufacturing margin $
Variable selling and administrative expenses
Contribution margin $
Fixed costs:
Fixed manufacturing costs $
Fixed selling and administrative expenses
Total fixed costs
Income from operations $

Salespersons' Report and Analysis

Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:

Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses
Case $603,000 $241,200 $132,660
Dix 505,000 161,600 111,100
Johnson 488,000 185,440 73,200
LaFave 523,000 271,960 73,220
Orcas 591,000 200,940 82,740
Sussman 384,000 218,880 76,800
Willbond 544,000 184,960 92,480

Required:

1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.

Waltham Industries Inc.
Salespersons' Analysis
For the Year Ended December 31
Salesperson Contribution Margin Variable Cost of Goods Sold as a Percent of Sales Variable Selling Expenses as a Percent of Sales Contribution Margin Ratio
Case $ % % %
Dix % % %
Johnson % % %
LaFave % % %
Orcas % % %
Sussman % % %
Willbond % % %

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