Joplin Industries Inc, manufactures and sols high quality sporting poode equipment under is highly recognizable J Sports logo. The company began operations on May and operated at 100% of capacity (62.000 units) during the fest month, creating an ending inventory of 19.000 unts. During in the company produced 74.800 garments during the month but 85.800 unts at 5100 per unit The June manutacturing costs and selling and administrative expenses were as follows Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory Variable 1 11,000 $52 $572.000 Fixed 11.000 88.000 Total $60 $800.000 Manufacturing costs in June 74.800 $52 Variable $ 3.889.600 Fixed 74,800 10 748.000 Total 562 $4.637,600 Selling and administrative expenses in June Variable 85,800 $18 $ 1,544.400 Foced 85,800 2 171.600 Total 520 $1,716,000 Required: a. Prepare an income statement according to the absorption costing concept for And Prepare an income statement according to the variable costing concept for What is the reason for the difference in the amount of income from operation reported in (a) and (b) Refer to the list of Labels and Amount Descriptions for the exact wording of the choice for our entries. Be sure to complete the Statement heading. A colon () will automatically appear is required. Waner oss is incurred, enter that amount as a negative number using a minus sign. Pry Next b. Prepare an income statement according to the variable costing concept for lune. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. I a met loss is incurred, enter that amount as a negative number using a minus sign Joplin Industries Inc Variable Costing Income Statement (Label) 1 ? 1 4 5 6 Label 7 10 Previous Next Cher My Work Final Question . What is the reason for the difference in the amount of income from operations reported in and by Checker har Apply There is no difference, the income from operations reported in (a) and (b) is the same Under absorption costing, when inventory decreases, the income statement will have a higher como trom operations than will the variable coming income statement Under variable costing the units that were produced but unsold in May Include fixed manufacturing cost, which is included in cont of goods sold for June. Under absorption costing, when inventory decreases the income statement will have a lower income from operations than wil the variable costing come statement Under variable costing, wil of the found manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change
