Units produced 8050
Units sold 7300
Selling price per unit $4800
Direct material per unit $2030
Direct labor per unit $1250
Variable manufacturing overhead per unit $990
Variable selling cost per unit $225
Annual fixed manufacturing overhead $829150
Annual fixed selling and administrative expense $401600 Prepare an income statement using full costing. (List multiple entries from largest to smallest amounts e.g. 10 5 2. Enter all amounts as positive amounts and
subtract where necessary.) Jorgensen Manufacturing
Income Statement
For the Year End December 31 2011 $
Less
Gross margin
Less:
Net income $ Prepare an income statement using variable costing. (List multiple entries from largest to smallest amounts e.g. 10 5 2. Enter all amounts as positive amounts
and subtract where necessary.) Jorgensen Manufacturing
Income Statement
For the Year End December 31 2011 $
Less:
Contribution margin
Less:
Net income $ Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing. $ What is the difference between income computed under variable costing and income computed under full costing? $ Suppose that the company sold 8050 units during the year. What would the variable costing net income have been? $ What would the full costing net income have been? $