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 (5,400 units) $199,800 Cost of goods sold: Cost of goods manufactured (6,300 units) $163,800 Inventory, April 30 (900 units) (23,400) Total cost of goods sold (140,400) Gross prot $59,400 Selling and administrative expenses (33,100) Operating income $26,300 If the xed manufacturing costs were $34,398 and the xed selling and administrative expenses were $16,210, 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 199,800 Variable cost of goods sold: Variable cost of goods manufactured Inventory, April 30 Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses V Contribution margin Fixed costs: Fixed manufacturing costs 34,398 Fixed selling and administrative expenses 16,210 Total fixed costs 50,608 Operating income XFeedback 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)Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the rst month. The following data summarize the results for July: Sales (17,500 unils) $1,925,000 Production costs (23,000 units): Direct materials $936,100 Direct labor 448,500 Variable factory overhead 225,400 Fixed factory overhead 149,500 1,759,500 Selling and administrative expenses: Variable selling and administrative expenses $272,700 Fixed selling and administrative expenses 105,600 378,300 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales $ 1,925,000 Cost of goods sold 3,144,100 X Gross profit Selling and administrative expenses 378,300 Operating income Feedback Check My Work a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead.b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. Variable Costing Income Statement For the Month Ended July 31 Sales 1,925,000 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses V 272,700 Contribution margin Fixed costs: Fixed factory overhead costs 149,500 Fixed selling and administrative expenses 105,600 Total fixed costs Operating income Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs