Question

During the first month of operations ended May 31, Big Sky Creations Company produced 56,000 designer cowboy boots, of which 52,450 were sold. Operating data for the month are summarized as follows:

1	Sales		$839,200.00
2	Manufacturing costs:
3	Direct materials	$425,600.00
4	Direct labor	123,200.00
5	Variable manufacturing cost	67,200.00
6	Fixed manufacturing cost	56,000.00	672,000.00
7	Selling and administrative expenses:
8	Variable	$31,470.00
9	Fixed	26,225.00	57,695.00

During June, Big Sky Creations produced 48,900 designer cowboy boots and sold 52,450 cowboy boots. Operating data for June are summarized as follows:

1	Sales		$839,200.00
2	Manufacturing costs:
3	Direct materials	$371,640.00
4	Direct labor	107,580.00
5	Variable manufacturing cost	58,680.00
6	Fixed manufacturing cost	56,000.00	593,900.00
7	Selling and administrative expenses:
8	Variable	$31,470.00
9	Fixed	26,225.00	57,695.00

Labels, June 30, Cost of goods sold, Fixed costs, For the Month Ended June 30, For the Month Ended May 31, May 31, Variable cost of goods sold,

Amount Descriptions:Contribution margin, Contribution margin ratio, Cost of goods manufactured, Fixed manufacturing costs, Fixed selling and administrative expenses, Gross profit, Operating income, Inventory, June 1, Inventory, May 31, Operating loss, Manufacturing margin, Planned contribution margin, Sales, Sales mix, Selling and administrative expenses, Total cost of goods sold, Total fixed costs, Total variable cost of goods sold, Variable cost of goods manufactured, Variable selling and administrative expenses

Big Sky Creations Company

Absorption Costing Income Statement

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Big Sky Creations Company

Variable Costing Income Statement

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Answer 1