Question

Metro Company reports the following information for March: (Click the icon to view the data.) Read the requirements. Data Table Requirement 1. Calculate the gross profit and operating income for March using absorption costing. Metro Company Income Statement (Absorption Costing) For the Month Ended March 31 $ Net Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Variable Selling and Administrative Costs Fixed Selling and Administrative Costs 82,450 24,500 8,400 10,500 4,900 Print Done Operating Income Requirement 2. Calculate the contribution margin and operating income for March using variable costing.

Answer 1

Answer-1)-

Metro Company
Income statement (Using absorption costing approach)
For the month ended March 31
Particulars			Amount
			$
Sales			82450
Less:- Cost of goods sold			32900
Variable	24500
Fixed	8400
Gross profit			49550
Less:-Variable selling & administrative exp.			10500
Less:-Fixed selling & administrative exp.			4900
Net Income			34150

2)-

Metro Company
Income statement (Using variable costing approach)
For the month ended March 31
Particulars			Amount
			$
Sales			82450
Less:- Variable cost of goods sold			24500
Gross contribution margin C= a-b			57950
Less:-Variable selling & administrative exp.			10500
Contribution margin			47450
Less-Fixed costs of goods sold			8400
Less- Fixed Selling & administrative exp.			4900
Net Income			34150