Absorption Costing Income Statement

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

Maryville Equipment Company

Variable Costing Income Statement

For the Month Ended October $31$

Line Item Description Amount Amount

Sales $(14,200$ units$)$ $$624,800$

Variable cost of goods sold:

Variable cost of goods manufactured $$288,000$

Inventory, October $31(1,800$ units$)(32,400)$

Total variable cost of goods sold $(255,600)$

Manufacturing margin $$369,200$

Variable selling and administrative expenses $(156,200)$

Contribution margin $$213,000$

Fixed costs:

Fixed manufacturing costs $$64,000$

Fixed selling and administrative expenses $42,600$

Total fixed costs $(106,600)$

Operating income $$106,400$

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

Maryville Equipment Company

Absorption Costing Income Statement

For the Month Ended October $31$

Line Item Description Amount Amount

$$-$ Select $-$

Cost of goods sold:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$