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 $(2,600$ units$)$ $$96,200$

Cost of goods sold:

Cost of goods manufactured $(3,100$ units$)$ $$80,600$

Inventory, April $30(400$ units$)(10,400)$

Total cost of goods sold $(70,200)$

Gross profit $$26,000$

Selling and administrative expenses $(16,210)$

Operating income $$9,790$

If the fixed manufacturing costs were $$20,150$ and the fixed selling and administrative expenses were $$7,940,$ 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

$Sales

$96,200$

Variable cost of goods sold:

Variable cost of goods manufactured

$Variable cost of goods manufactured

Inventory, April $30$

Inventory, April $30$

$1$

Total variable cost of goods sold

Total variable cost of goods sold

Manufacturing margin

$Manufacturing margin

Variable selling and administrative expenses

Variable selling and administrative expenses

$8,270$

Contribution margin

$Contribution margin

Fixed costs:

Fixed manufacturing costs

$Fixed manufacturing costs

$20,150$

Fixed selling and administrative expenses

Fixed selling and administrative expenses

$7,940$

Total fixed costs

Total fixed costs

$28,090$

Operating income

$Operating income

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