On March 31, the end of the first month of operations, Sullivan Equipment Company prepared the following income statement, based on the variable costing concept:

Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31
Sales (12,400 units)			$669,600
Variable cost of goods sold:
Variable cost of goods manufactured	$321,200
Inventory, March 31 (2,200 units)	(48,400)
Total variable cost of goods sold			272,800
Manufacturing margin			$396,800
Variable selling and administrative expenses			173,600
Contribution margin			$223,200
Fixed costs:
Fixed manufacturing costs	$58,400
Fixed selling and administrative expenses	49,600
Total fixed costs			108,000
Income from operations			$115,200

Prepare an income statement under absorption costing. Round all final answers to whole dollars.

Sullivan Equipment Company
Absorption Costing Income Statement
For the Month Ended March 31

Contribution margin Inventory, March 31Fixed manufacturing costsSalesSelling and administrative expenses		$- Select -
Cost of goods sold:
Contribution marginCost of goods manufactured Cost of goods soldSalesSelling and administrative expenses	$- Select -
Contribution marginCost of goods manufacturedCost of goods soldInventory, March 31Selling and administrative expenses	- Select -
Inventory, March 31SalesTotal cost of goods manufacturedTotal cost of goods sold Total fixed manufacturing costs		- Select -
Cost of goods manufactured Inventory, March 31Gross profitSalesSelling and administrative expenses		$- Select -
Cost of goods manufacturedCost of goods soldInventory, March 31Fixed manufacturing costs Selling and administrative expenses		- Select -
Income from operations Loss from operations		$- Select -

Answer rating: 100% (QA)

Calculation of product cost under absorption costing income state... View the full answer