Gross Margin and Contribution Margin Income Statements
Larker Manufacturing's cost accountant has provided you with the following information for January operations:
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Direct materials
|
$105 per unit
|
|
Fixed manufacturing overhead costs
|
$675,000
|
|
Sales price
|
$395 per unit
|
|
Variable manufacturing overhead
|
$60 per unit
|
|
Direct labor
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$120 per unit
|
|
Fixed marketing and administrative costs
|
$585,000
|
|
Units produced and sold
|
30,000
|
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Variable marketing and administrative costs
|
$24 per unit
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Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.