Posted: July 12th, 2016

How will this amount be reported in the financial statements?

The following information is available for Brownstone Products Company for the month of July

Actual Master Budget
Units 3,800 4,000
Sales revenue $53,200 $60,000
Variable manufacturing costs 19,000 16,000
Fixed manufacturing costs 16,000 15,000
Variable selling and administrative expenses 7,700 8,000
Fixed selling and administrative expenses 10,000 9,000

1. Set up a spreadsheet to compute the July sales volume variance and the flexible-budget variance for the month in terms of both contribution margin and operating income
2. Create an electronic spreadsheet that will allow the firm to prepare pro forma budgets for activities within the relevant range of operations and prepare flexible budgets when sales are:
a. 3,750 units
b. 4,150 units

Cost of goods manufactured, costs of goods sold, and income statement:
Gravois, Inc. incurred the following costs during June:

Please see the attached PDF document for the chart.

Required:
During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process.
a. Calculate the cost of goods manufactured during June and the average cost per unit of product manufactured.
b. Calculate the cost of goods sold during June
c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?