1. 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 (6,600 units)			$250,800
   Cost of goods sold:
   Cost of goods manufactured (7,700 units)	$207,900
   Inventory, April 30 (1,100 units)	(29,700)
   Total cost of goods sold			(178,200)
   Gross profit			$72,600
   Selling and administrative expenses			(42,960)
   Operating income			$29,640

   If the fixed manufacturing costs were $49,896 and the fixed selling and administrative expenses were $21,040, 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

   Contribution marginInventoryManufacturing marginSalesVariable cost of goods manufacturedVariable selling and administrative expensesSales		$Sales
   Variable cost of goods sold:
   Contribution marginFixed manufacturing costsVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expensesVariable cost of goods manufactured	$Variable cost of goods manufactured
   Fixed manufacturing costsInventory, April 30Fixed selling and administrative expensesManufacturing marginSalesInventory, April 30	Inventory, April 30
   InventorySalesTotal variable cost of goods manufacturedTotal variable cost of goods soldTotal variable selling and administrative expensesTotal variable cost of goods sold		Total variable cost of goods sold
   Contribution marginFixed manufacturing costsInventoryManufacturing marginSalesManufacturing margin		$Manufacturing margin
   Manufacturing marginSalesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expensesVariable selling and administrative expenses		Variable selling and administrative expenses
   Contribution marginFixed selling and administrative expensesInventoryManufacturing marginSalesContribution margin		$Contribution margin
   Fixed costs:
   Fixed manufacturing costsFixed inventoryVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expensesFixed manufacturing costs	$Fixed manufacturing costs
   Fixed selling and administrative expensesFixed inventoryFixed salesVariable cost of goods soldVariable selling and administrative expensesFixed selling and administrative expenses	Fixed selling and administrative expenses
   Contribution marginOperating incomeManufacturing marginSalesTotal fixed costsTotal fixed costs		Total fixed costs
   Operating incomeLoss from operationsOperating income		$Operating income

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   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)

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