10.

Variable Costing Income Statement

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

Weatherford Company Absorption Costing Income Statement For the Month Ended November 30
Sales (2,700 units)			$56,700
Cost of goods sold:
Cost of goods manufactured (3,200 units)	$48,000
Inventory, November 30 (400 units)	6,000
Total cost of goods sold			42,000
Gross profit			$14,700
Selling and administrative expenses			9,700
Income from operations			$5,000

Assume the fixed manufacturing costs were $12,960 and the fixed selling and administrative expenses were $4,750.

Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Weatherford Company
Variable Costing Income Statement
For the Month Ended November 30
		$
Variable cost of goods sold:
	$
		$
		$
Fixed costs:
	$