Question
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
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 (2,900 units) | $46,400 | ||
Cost of goods sold: | |||
Cost of goods manufactured (3,300 units) | $36,300 | ||
Inventory, April 30 (500 units) | (5,500) | ||
Total cost of goods sold | (30,800) | ||
Gross profit | $15,600 | ||
Selling and administrative expenses | (8,800) | ||
Operating income | $6,800 |
If the fixed manufacturing costs were $9,438 and the fixed selling and administrative expenses were $4,310, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
Sales = 46400
Variable cost of good manufactured:
Inventory, April 30 =26862
Total Variable cost of goods sold = 4070
Manufacturing Margin =
Variable selling and administrative expenses =
Contribution margin =
Fixed Costs:
Fixed manufacturing costs =
Fixed selling and administrative expenses =
Total Fixed Costs =
Operating income =
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