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Following is the revenue and cost data for Barian Ltd. in the manufacturing of luxury shower...

Following is the revenue and cost data for Barian Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2020:

Variable manufacturing costs $33 per curtain

Fixed manufacturing overhead $87,500

Variable selling and administrative expenses $8 per curtain

Fixed selling and administrative expenses $184,100

Selling price $81 per curtain

Units produced and sold 8,750

Prepare an income statement using absorption costing.

Barian Ltd.
Income Statement

Absorption Costing

	$

Prepare an income statement using variable costing.

Barian Ltd.
Income Statement

Variable Costing

	$

Solutions

Expert Solution

Solution:

Income Statement under Absorption Costing Method

Working:

Calculation of Cost of Goods Sold:

Income statement under Variable Costing Method:

Working:

ekkarill92 answered 2 years ago

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