On June 30, the end of the first month of operations, Volker Energy Company prepared the following income statement, based on the absorption costing concept:

If the fixed manufacturing costs were $25,200 and the variable selling and administrative expenses were $11,400, prepare an income statement according to the variable costingconcept.

Transcribed Image Text:

Volker Energy Company Absorption Costing Income Statement For the Month Ended June 30, 2011 Sales (4,800 units Cost of goods sold: $134,400 Cost of goods manufactured (5,600 units) Less inventory, June 30 (800 units).-..- $112,000 16,000 Cost of goods sold. Gross profit-.. Selling and administrative expenses. Income from operations 96,000 S 38,400 22,550 15,850