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Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,400 units,
Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,400 units, and 2,200 units remain in ending finished goods inventory for May. Fixed overhead was $51,000. Variable selling and administration expenses were $32,000 and fixed selling and administrative expenses were $12,000. Sales (18,200 units) $ 455,000 Cost of goods sold 392,000 Gross profit 63,000 Selling and administrative expenses 44,000 Income $ 19,000 Prepare an income statement using variable costing. DION COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold $ 455,000 0 Contribution margin Less: Fixed expenses 0 Income
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