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 $(11,700$ units$)$ $$748,800$

Variable cost of goods sold:

Variable cost of goods manufactured $$371,800$

Inventory, October $31(2,600$ units$)(67,600)$

Total variable cost of goods sold $(304,200)$

Manufacturing margin $$444,600$

Variable selling and administrative expenses $(198,900)$

Contribution margin $$245,700$

Fixed costs:

Fixed manufacturing costs $$71,500$

Fixed selling and administrative expenses $46,800$

Total fixed costs $(118,300)$

Operating income $$127,400$

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 $-$