Variable Costing Income Statement

On November $30,$ the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept:

Weatherford Company

Absorption Costing Income Statement

For the Month Ended November $30$

Sales $(5,300$ units$)$ $$121,900$

Cost of goods sold:

Cost of goods manufactured $(6,100$ units$)$ $$97,600$

Inventory, November $30(900$ units$)(14,400)$

Total cost of goods sold $83,200$

Gross profit $$38,700$

Selling and administrative expenses $22,460$

Income from operations $$16,240$

Assume the fixed manufacturing costs were $$25,376$ and the fixed selling and administrative expenses were $$11,000.$

Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Weatherford Company

Variable Costing Income Statement

For the Month Ended November $30$

$Sales

Variable cost of goods sold:

$Variable cost of goods manufactured

Inventory, November $30$

Total variable cost of goods sold

$Manufacturing margin

Variable selling and administrative expenses

$Contribution margin

Fixed costs:

$Fixed manufacturing costs

Fixed selling and administrative expenses

Total fixed costs

$Income from operations

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