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Indigo Golf Ltd. produces and sells special golf balls for $23.00 for a pack of three. In May 2022 , the company manufactured 36,600 packs
Indigo Golf Ltd. produces and sells special golf balls for $23.00 for a pack of three. In May 2022 , the company manufactured 36,600 packs (its normal volume) and sold 34,160 packs. The beginning inventory on May 1, 2022, was 6,100 packs. Production information for May 2022 is as follows: Prepare income statements in good form for the month ended May 31, 2022, under absorption and variable costing. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945). Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) INDIGOGOLF LTD. Variable-Costing Income Statement For the Month Ended May 31, 2022 Sales in units Sales Variable costs Variable cost of goods sold Variable selling costs Total variable costs Contribution margin Net income / (loss) Reconcile the operating income calculated under absorption costing with the operating income calculated under variable costing. Assume that April's costs were the same as those of May. (Enter loss using either a negative sign preceding the number eg. -2,945 or parentheses e.g. (2,945). Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eq. 125.)
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