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On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown &
On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:
Morristown & Co. | ||||
Absorption Costing Income Statement | ||||
For the Month Ended October 31 | ||||
Sales (2,600 units) | $117,000 | |||
Cost of goods sold: | ||||
Cost of goods manufactured | $85,500 | |||
Ending inventory (400 units) | (11,400) | |||
Total cost of goods sold | (74,100) | |||
Gross profit | $42,900 | |||
Selling and administrative expenses | (21,500) | |||
Operating income | $21,400 |
If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing.
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On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing: Morristown & Co. $117,000 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 THE (74,100) $42,900 (21,500) $21,400 If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing. Morristown & Co. Variable Costing Income Statement For the Month Ended October 31 $ Variable cost of goods sold: no ju dhib Fixed costs Operating incomeStep by Step Solution
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