Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem Set: Module 6 Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income

image text in transcribed
Problem Set: Module 6 Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (5,100 units) $183,600 Cost of goods sold: > Cost of goods manufactured (5,900 units) $153,400 Inventory, April 30 (800 units) (20,800} Total cost of goods sold (132,600) Gross profit $51,000 Selling and administrative expenses (32,320) Operating income $18,680 If the fixed manufacturing costs were $41,418 and the fixed selling and administrative expenses were $15,830, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 Sales V v' 55' Variable cost of goods sold: Variable cost of 0005 manufactured ' J $ Inventory April 30 V v' ' Total variable cost of goods sold ' V V Manufacturing margin ' J $ Variable selling and administrative expenses V v' Contribution margin ' \\1 $ Fixed costs: Fixed manufacturing costs ' J $l Fixed selling and administrative expenses V v/ Total fixed costs ' ~/ Operating income ' J $ Feedback ' Check My Work Sales - (Variable Cost of Goods Manufactured* Variable Costing Ending inventory**) = Manufacturing Margin; Manufacturing Margin - Variable Selling and Administrative Expenses = Contribution Margin; Contribution Margin - (Fixed Manufacturing Costs + Fixed Selling and Administrative Expenses) = Operating income *Variable Cost of Goods Manufactured = Total Cost of Goods Manufactured - Fixed Manufacturing Cost **Variable Costing Ending Inventory = (Variable Cost of Goods Manufactured/Total Units of Goods Manufactured) x Absorption Costing Ending Inventory Units (given) Check My Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Advanced Financial Accounting

Authors: Richard Baker

1st Edition

0078025648, 9780078025648

More Books

Students also viewed these Accounting questions

Question

Find f 2x(3x2 5)4dx. )5 exa -5) q 01 u (3xz-5)5 + C

Answered: 1 week ago