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Variable Costing Income Statement

On April $30,$ the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:

Joplin Company

Absorption Costing Income Statement

For the Month Ended April $30$

Line Item Description Amount Amount

Sales $(5,100$ units$)$ $$91,800$

Cost of goods sold:

Cost of goods manufactured $(5,916$ units$)$ $$76,908$

Inventory, April $30(816$ units$)(10,608)$

Total cost of goods sold $(66,300)$

Gross profit $$25,500$

Selling and administrative expenses $(14,430)$

Operating income $$11,070$

If the fixed manufacturing costs were $$15,381\mathrm{.}6$ and the fixed selling and administrative expenses were $$7,070,$ prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Joplin Company

Variable Costing Income Statement

For the Month Ended April $30$

Line Item Description Amount Amount

Sales

$Sales

$91,800$

Variable cost of goods sold:

Variable cost of goods manufactured

$Variable cost of goods manufactured

$61,526\mathrm{.}4$

Inventory, April $30$

Inventory, April $30$

Total variable cost of goods sold

Total variable cost of goods sold

Manufacturing margin

$Manufacturing margin

Variable selling and administrative expenses

Variable selling and administrative expenses

Contribution margin

$Contribution margin

Fixed costs:

Fixed manufacturing costs

$Fixed manufacturing costs

$15,381\mathrm{.}6$

Fixed selling and administrative expenses

Fixed selling and administrative expenses

$7,070$

Total fixed costs

Total fixed costs

$22,451\mathrm{.}6$

Operating income

$Operating income

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Sales $-($Variable Cost of Goods Manufactured$*-$ Variable Costing Ending inventory$**)=$ Manufacturing Margin; Manufacturing Margin $-$ Variable Selling and Administrative Expenses $=$ Contribution Margin; Contribution Margin $-($Fixed Manufacturing Costs $+$ Fixed Selling and Administrative Expenses$)=$ Operating income

$*$Variable Cost of Goods Manufactured $=$ Total Cost of Goods Manufactured $-$ Fixed Manufacturing Cost

$**$Variable Costing Ending Inventory $=($Variable Cost of Goods Manufactured$/$Total Units of Goods Manufactured$)$ x Absorption Costing Ending Inventory Units $($given$)$