On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: $117,000 Morristown & Co. Absorption Costing Income Statement For the Month Ended October 31 Sales (2,600 units) Cost of goods sold: Cost of goods manufactured $85,500 Ending inventory (400 units) (11.400) Total cost of goods sold Gross profit Selling and administrative expenses Operating income (74,100) $42.900 (21,500) $21.400 If the fixed manufacturing costs were $42.900 and the variable selling and administrative expenses were $14.500, prepare an income statement using variable costing. Morristown Co. Variable Costing Income Statement For the Month Ended October 31 Variable cost of goods solid Foco Previous Next > Type here to search