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

Weatherford Company

Absorption Costing Income Statement

For the Month Ended November 30

1	Sales (23,000 units)		$3,450,000.00
2	Cost of goods sold:
3	Cost of goods manufactured (26,000 units)	$2,080,000.00
4	Inventory, November 30 (3,000 units)	(240,000.00)
5	Total cost of goods sold		1,840,000.00
6	Gross profit		$1,610,000.00
7	Selling and administrative expenses		170,000.00
8	Income from operations		$1,440,000.00

If the fixed manufacturing costs were $208,000 and the fixed selling and administrative expenses were $115,000, prepare an income statement according to the variable costing concept. Refer to the lists 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 required. Enter all amounts as positive numbers. Round your cost per unit answer to two decimal places and final answers to nearest whole dollar.

Labels
Fixed costs
For the Month Ended November 30
November 30
Amount Descriptions
Contribution margin
Contribution margin ratio
Fixed manufacturing costs
Fixed selling and administrative expenses
Gross profit
Income from operations
Inventory, November 30
Loss from operations
Manufacturing margin
Planned contribution margin
Sales
Sales mix
Total fixed costs
Total variable cost of goods sold
Variable cost of goods manufactured
Variable cost of goods sold
Variable selling and administrative expenses

If the fixed manufacturing costs were $208,000 and the fixed selling and administrative expenses were $115,000, prepare an income statement according to the variable costing concept. Refer to the lists 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 required. Enter all amounts as positive numbers. Round your cost per unit answer to 2 decimal places & final answers to nearest whole dollar.

Weatherford Company

Variable Costing Income Statement

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