On April 30, the end of the first month of operations, Joplin Company prepared the following income
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Question:
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 (5,100 units) | $76,500 | ||
Cost of goods sold: | |||
Cost of goods manufactured (5,900 units) | $64,900 | ||
Inventory, April 30 (800 units) | (8,800) | ||
Total cost of goods sold | (56,100) | ||
Gross profit | $20,400 | ||
Selling and administrative expenses | (12,820) | ||
Operating income | $7,580 |
If the fixed manufacturing costs were $16,225 and the fixed selling and administrative expenses were $6,280, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
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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