During the first month of operations ended May 31, Big Sky Creations Company produced 56,000 designer cowboy boots, of which 52,450 were sold. Operating data for the month are summarized as follows:

1	Sales		$839,200.00
2	Manufacturing costs:
3	Direct materials	$425,600.00
4	Direct labor	123,200.00
5	Variable manufacturing cost	67,200.00
6	Fixed manufacturing cost	56,000.00	672,000.00
7	Selling and administrative expenses:
8	Variable	$31,470.00
9	Fixed	26,225.00	57,695.00

During June, Big Sky Creations produced 48,900 designer cowboy boots and sold 52,450 cowboy boots. Operating data for June are summarized as follows:X

1	Sales		$839,200.00
2	Manufacturing costs:
3	Direct materials	$371,640.00
4	Direct labor	107,580.00
5	Variable manufacturing cost	58,680.00
6	Fixed manufacturing cost	56,000.00	593,900.00
7	Selling and administrative expenses:
8	Variable	$31,470.00
9	Fixed	26,225.00	57,695.00

Absorption Costing Income Statement-June

1b. Using the absorption costing concept, prepare income statements for June. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative.

Big Sky Creations Company

Absorption Costing Income Statement

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Labels: June 30, Cost of goods sold, Fixed costs, For the Month Ended June 30, For the Month Ended May 31, May 31, Variable cost of goods sold

Amount Descriptions:Contribution margin, Contribution margin ratio, Cost of goods manufactured, Fixed manufacturing costs, Fixed selling and administrative expenses, Gross profit, Operating income, Inventory, June 1, Inventory, May 31, Operating loss, Manufacturing margin, Planned contribution margin, Sales, Sales mix, Selling and administrative expenses, Total cost of goods sold, Total fixed costs, Total variable cost of goods sold, Variable cost of goods manufactured, Variable selling and administrative expenses

Big Sky Creations Company

Variable Costing Income Statement

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Answer rating: 100% (QA)

To prepare the absorption costing income statement for June we need to calculate the cost of goods s... View the full answer