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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:
Line Item Description | Amount | Amount |
---|---|---|
Sales (275,000 units) | $4,950,000 | |
Cost of goods sold: | ||
Cost of goods manufactured (300,000 units) | $4,050,000 | |
Inventory, April 30 (25,000 units) | (337,500) | |
Total cost of goods sold | (3,712,500) | |
Gross profit | $1,237,500 | |
Selling and administrative expenses | (275,000) | |
Operating income | $962,500 |
If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept.
Line Item Description | Amount | Amount |
---|---|---|
Contribution marginInventoryManufacturing marginOperating incomeSales | $- Select - | |
Variable cost of goods sold: | ||
Manufacturing marginSalesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses | $- Select - | |
Contribution marginFixed manufacturing costsFixed selling and administrative expensesInventory, April 30Sales | - Select - | |
InventorySalesTotal variable cost of goods manufacturedTotal variable cost of goods soldTotal variable selling and administrative expenses | - Select - | |
Contribution marginFixed selling and administrative expensesInventoryManufacturing marginSales | $- Select - | |
Contribution marginSalesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses | - Select - | |
Contribution marginFixed manufacturing costsFixed selling and administrative expensesInventoryManufacturing margin | $- Select - | |
Fixed costs: | ||
Fixed inventoryFixed manufacturing costsFixed salesVariable cost of goods manufacturedVariable cost of goods sold | $- Select - | |
Fixed inventoryFixed selling and administrative expensesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses | - Select - | blank |
Contribution marginManufacturing marginOperating incomeSalesTotal fixed costs | - Select - | |
Operating incomeLoss from operations | $- Select - |
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