Question

Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: $9 Direct materials Direct labor $6 Variable overhead $4 Fixed costs: $5 Fixed overhead per unit produced Fixed selling and administrative $ 138,000 Required: 1. Calculate the cost of goods sold under absorption costing. $

Answer 1

COGS - absorption costing Particulars Direct material per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Unit cost Number of units sold Cost of Goods Sold (9300*24) Amount $ 9 $ 6 $ 4 $ 5 $ 24 $ 9,300 $ 2,23,200 Osterman Company Income Statement Under Absorption Costing For the Most Recent Year Particulars Amount Sales (9300*47) $ 4,37,100 Less: Cost of goods Sold $ 2,23,200 Gross Margin $ 2,13,900 Less: Selling & Admin Exp $ 1,38,000 Operating income $ 75,900 llll Kindly Comment down for any clarifications/ queries and please rate answer.