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 $(4,500$ units$)$ $$85,500$

Cost of goods sold:

Cost of goods manufactured $(5,265$ units$)$ $$68,445$

Inventory, April $30(765$ units$)(9,945)$

Total cost of goods sold $(58,500)$

Gross profit $$27,000$

Selling and administrative expenses $(15,290)$

Operating income $$11,710$

If the fixed manufacturing costs were $$16,426\mathrm{.}8$ and the fixed selling and administrative expenses were $$7,490,$ 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

$85,500$

Variable cost of goods sold:

Variable cost of goods manufactured

$Variable cost of goods manufactured

Inventory, April $30$

Inventory, April $30$

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

$7,800$

Contribution margin

$Contribution margin

Fixed costs:

Fixed manufacturing costs

$Fixed manufacturing costs

Fixed selling and administrative expenses

Fixed selling and administrative expenses

$7,490$

Total fixed costs

Total fixed costs

Operating income

$Operating income

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Sales $-($Variable Cost of Goods Manufactured$*-$ Variable Costing Ending inventory$**)=$ Manufacturing Margin; Manufacturing Margin $-$ Variable Selling and Administrative Expenses $=$ Contribution Margin; Contribution Margin $-($Fixed Manufacturing Costs $+$ Fixed Selling and Administrative Expenses$)=$ Operating income

$*$Variable Cost of Goods Manufactured $=$ Total Cost of Goods Manufactured $-$ Fixed Manufacturing Cost

$**$Variable Costing Ending Inventory $=($Variable Cost of Goods Manufactured$/$Total Units of Goods Manufactured$)$ x Absorption Costing Ending Inventory Units $($given$)$