Question
Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1. Sales, 16,000 units $640,000 Cost of goods sold 432,000 Gross
Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1.
Sales, 16,000 units $640,000
Cost of goods sold 432,000
Gross margin $208,000
Selling and administrative expenses 92,000
Operating income $116,000
Additional information follows:
Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required: Prepare a variable costing income statement for the same period.
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