Absorption Costing Income Statement

On March 31, the end of the first month of operations, Sullivan Equipment Company prepared the following income statement, based on the variable costing concept:

Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31
Sales (10,900 units)			$479,600
Variable cost of goods sold:
Variable cost of goods manufactured	$228,600
Inventory, March 31 (1,800 units)	(32,400)
Total variable cost of goods sold			196,200
Manufacturing margin			$283,400
Variable selling and administrative expenses			119,900
Contribution margin			$163,500
Fixed costs:
Fixed manufacturing costs	$50,800
Fixed selling and administrative expenses	32,700
Total fixed costs			83,500
Income from operations			$80,000

Prepare an income statement under absorption costing. Round all final answers to whole dollars.

Sullivan Equipment Company
Absorption Costing Income Statement
For the Month Ended March 31
Sales		$
Cost of goods sold:
Cost of goods manufactured	$
Inventory, March 31
Total cost of goods sold
Gross profit		$
Selling and administrative expenses
Income from operations		$

_________________________________________________________________________________________________

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 (2,900 units)			$81,200
Cost of goods sold:
Cost of goods manufactured (3,400 units)	$68,000
Inventory, November 30 (500 units)	(10,000)
Total cost of goods sold			58,000
Gross profit			$23,200
Selling and administrative expenses			13,820
Income from operations			$9,380

Assume the fixed manufacturing costs were $16,320 and the fixed selling and administrative expenses were $6,770.

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
Sales		$
Variable cost of goods sold:
Variable cost of goods manufactured	$
Inventory, November 30
Total variable cost of goods sold
Manufacturing margin		$
Variable selling and administrative expenses
Contribution margin		$
Fixed costs:
Fixed manufacturing costs	$
Fixed selling and administrative expenses
Total fixed costs
Income from operations		$