Question

Kopi Company produces dog cages that are sold for $40 per unit. The company produced and sold 6,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow.

Variable Costs per Unit				Fixed Costs per Month
Manufacturing:				Manufacturing overhead			$40,000
Direct materials		$10		Selling and administrative			20,000
Direct labor		2		Total			$60,000
Manufacturing overhead		5	$17
Selling and administrative			5
Total			$22

Required
Prepare a contribution income statement for July.

Do not use any negative signs with your answers.   

Kopi Company
Contribution Income Statement
For the Month of July 2017
Sales		$ Answer
Less variable costs
Direct materials	$ Answer
Direct labor	Answer
Manufacturing overhead	Answer
Selling and administrative	Answer	Answer
Contribution margin		Answer
Less fixed cost:
Manufacturing overhead	Answer
Selling and administrative	Answer	Answer
Profit		$ Answer

Answer 1

Kopi Company
Contribution Income Statement
For the Month of July 2017
Sales ( 6,000 *$ 40)		240,000
Less variable costs
Direct materials ( 6000 * $ 10)	60,000
Direct labor ( 6000 *$ 2)	12,000
Manufacturing overhead ( 6,000 *5)	30,000
Selling and administrative ( 6,000 * $ 5)	30,000	132,000
Contribution margin ( Sales - Variable Cost)		108,000
Less fixed cost:
Manufacturing overhead	40,000
Selling and administrative	20,000	60,000
Profit ( Variable Cost - Fixed Cost)		48,000