Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company
Question:
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 (6,600 units) $204,600 Cost of goods sold: Cost of goods manufactured (7,700 units)$169,400 Inventory, April 30 (1,100 units)(24,200) Total cost of goods sold (145,200) Gross profit $59,400 Selling and administrative expenses (33,480) Operating income $25,920
If the fixed manufacturing costs were $35,574 and the fixed selling and administrative expenses were $16,400, 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 204,600 Variable cost of goods sold:
Variable cost of goods manufactured $Variable cost of goods manufactured 133,826
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 17,080
Contribution margin $Contribution margin Fixed costs:
Fixed manufacturing costs $Fixed manufacturing costs 35,574
Fixed selling and administrative expenses Fixed selling and administrative expenses 16,400
Total fixed costs Total fixed costs 51,974
Operating income $Operating income