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Income Statement Indicating Standard Cost Variances

The following data were taken from the records of Griggs Company for December:

Administrative expenses	$100,800
Cost of goods sold (at standard)	550,000
Direct materials price varianceunfavorable	1,680
Direct materials quantity variancefavorable	(560)
Direct labor rate variancefavorable	(1,120)
Direct labor time varianceunfavorable	490
Variable factory overhead controllable variancefavorable	(210)
Fixed factory overhead volume varianceunfavorable	3,080
Interest expense	2,940
Sales	868,000
Selling expenses	125,000

Prepare an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry leave it blank.

Griggs Company Income Statement For the Month Ended December 31

Cost of goods sold-at standardFixed factory overhead volumeGross profitSalesSelling expensesSales			$Sales
Administrative expensesCost of goods sold-at standardDirect materials quantityDirect labor rateSelling expensesCost of goods sold-at standard			Cost of goods sold-at standard
Gross profit-at standardIncome before income taxIncome from operationsSalesGross profit-at standard			$Gross profit-at standard
	Unfavorable	Favorable
Variances from standard cost:
Administrative expensesCost of goods sold-at standardDirect materials priceInterest expenseSelling expensesDirect materials price	$Direct materials price	$Direct materials price
Cost of goods sold-at standardDirect materials quantityFixed factory overhead volumeInterest expenseSalesDirect materials quantity	Direct materials quantity	Direct materials quantity
Direct labor rateGross profit-at standardIncome before income taxIncome from operationsInterest expenseDirect labor rate	Direct labor rate	Direct labor rate
Cost of goods sold-at standardDirect labor timeGross profitInterest expenseSelling expensesDirect labor time	Direct labor time	Direct labor time
Cost of goods sold-at standardGross profitSelling expensesSalesVariable factory overhead controllableVariable factory overhead controllable	Variable factory overhead controllable	Variable factory overhead controllable
Administrative expensesFixed factory overhead volumeInterest expenseSalesVariable factory overhead controllableFixed factory overhead volume	Fixed factory overhead volume	Fixed factory overhead volume
Administrative expensesCost of goods sold-at standardDirect materials quantityDirect labor rateNet variance from standard cost-unfavorableNet variance from standard cost-unfavorable			Net variance from standard cost-unfavorable
Gross profitIncome before income taxIncome from operationsSalesGross profit			$Gross profit
Operating expenses:
Cost of goods sold-at standardDirect materials priceDirect labor timeInterest expenseSelling expensesSelling expenses	$Selling expenses	blank	blank
Administrative expensesDirect materials priceDirect materials quantityFixed factory overhead volumeInterest expenseAdministrative expenses	Administrative expenses	blank	blank
Total operating expenses	blank	blank	fill in the blank 33
Gross profit-at standardIncome before income taxIncome from operationsSalesIncome from operations			$Income from operations
Other expense:
Direct materials priceDirect materials quantityDirect labor rateDirect labor timeInterest expenseInterest expense			Interest expense
Gross profitGross incomeOperating lossOperating incomeOperating income			$Operating income

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Remember the difference between income statements prepared for internal and external users.