PLIT CUJUY UNU Vallaue CuSting instructions Labels and Amount Descriptions Absorption Costing Income Statement Variable Costing income Statement Final question Instructions Joplin Industries Inc., manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (84,000 units) during the first month, creating an ending inventory of 8,000 units. During June the company produced 76,600 garments during the month but sold 34,600 units at $92 per unit. The June manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory Variable 8,000 $50 $ 400,000 Fixed 8,000 10 80.000 Total $60 $480,000 Manufacturing costs in June Variable 76.600 $50 $ 3,830,000 Fixed 76.600 12 919,200 Total $62 $4,749,200 Selling and administrative expenses in June. Variable 84,600 $18 $ 1.522,800 Fixed 84,600 2 169,200 & $20 $1,692.000 Total Required: a. Prepare an income statement according to the absorption costing concept for June. b. Prepare an income statement according to the variable costing concept for June. C. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? *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 Previous instructions Labels and Amount Descriptions Absorption Costing Income Statement A 33 Roma State DES 2001 Labels and Amount Descriptions Absorption Costing Income Statement Labels June 30 Fixed costs a. Prepare an income statement according to the absorption costing concept for June. 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 (1) will automatically appear if it is required if a het loss is incorred, enter that amount as a negative number using a minus sign For the Month Ended June 30 Amount Descriptions Beginning inventory Contribution margin Joplin Industries Ina Absorption Costing Income Statement Contribution margin ratio Cost of goods manufactured Cost of goods sold 2 Cost of goods sold: Fixed manufacturing costs 3 Fixed selling and administrative expenses 4 Gross profit 5 Income from operations Loss from operations 6 Manufacturing margin 7 Planned contribution margin 8 Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Variable cost of goods sold Variable selling and administrative expenses Instructions Labels and Amount Descriptions Abisingation Casing income Statetnes Variable Costing Income Statement Final Question Variable Costing Income Statement Final Question C. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Check all that apply b. Prepare an income statement according to the variable costing concept for June. 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 coton () will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus Under variable costing, the units that were produced but unsold in May include fixed manufacturing cost, which is sign included in cost of goods sold for Jure @ Under absorption costing, when inventory decreases the income statement will have a higher income from operations than will the variable costing income statement Joplin Industries Inc. Under variable costing, all of the fixed manufacturing cost is deducted in the period in which it is incurred, Variable Costing Income Statement regardless of the amount of inventory change. (Label) o There is no difference, the income from operations reported in (a) and (b) is the same 1 Under absorption costing, when inventory decreases, the income statement will have a lower income from 2 operations than will the variable costing income statement. 3 4 5 6 Label) 7 8 9 10 PLIT CUJUY UNU Vallaue CuSting instructions Labels and Amount Descriptions Absorption Costing Income Statement Variable Costing income Statement Final question Instructions Joplin Industries Inc., manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (84,000 units) during the first month, creating an ending inventory of 8,000 units. During June the company produced 76,600 garments during the month but sold 34,600 units at $92 per unit. The June manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory Variable 8,000 $50 $ 400,000 Fixed 8,000 10 80.000 Total $60 $480,000 Manufacturing costs in June Variable 76.600 $50 $ 3,830,000 Fixed 76.600 12 919,200 Total $62 $4,749,200 Selling and administrative expenses in June. Variable 84,600 $18 $ 1.522,800 Fixed 84,600 2 169,200 & $20 $1,692.000 Total Required: a. Prepare an income statement according to the absorption costing concept for June. b. Prepare an income statement according to the variable costing concept for June. C. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? *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 Previous instructions Labels and Amount Descriptions Absorption Costing Income Statement A 33 Roma State DES 2001 Labels and Amount Descriptions Absorption Costing Income Statement Labels June 30 Fixed costs a. Prepare an income statement according to the absorption costing concept for June. 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 (1) will automatically appear if it is required if a het loss is incorred, enter that amount as a negative number using a minus sign For the Month Ended June 30 Amount Descriptions Beginning inventory Contribution margin Joplin Industries Ina Absorption Costing Income Statement Contribution margin ratio Cost of goods manufactured Cost of goods sold 2 Cost of goods sold: Fixed manufacturing costs 3 Fixed selling and administrative expenses 4 Gross profit 5 Income from operations Loss from operations 6 Manufacturing margin 7 Planned contribution margin 8 Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Variable cost of goods sold Variable selling and administrative expenses Instructions Labels and Amount Descriptions Abisingation Casing income Statetnes Variable Costing Income Statement Final Question Variable Costing Income Statement Final Question C. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Check all that apply b. Prepare an income statement according to the variable costing concept for June. 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 coton () will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus Under variable costing, the units that were produced but unsold in May include fixed manufacturing cost, which is sign included in cost of goods sold for Jure @ Under absorption costing, when inventory decreases the income statement will have a higher income from operations than will the variable costing income statement Joplin Industries Inc. Under variable costing, all of the fixed manufacturing cost is deducted in the period in which it is incurred, Variable Costing Income Statement regardless of the amount of inventory change. (Label) o There is no difference, the income from operations reported in (a) and (b) is the same 1 Under absorption costing, when inventory decreases, the income statement will have a lower income from 2 operations than will the variable costing income statement. 3 4 5 6 Label) 7 8 9 10