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Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin...
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 (3,400 units) | $129,200 | |||
| Cost of goods sold: | ||||
| Cost of goods manufactured (4,000 units) | $108,000 | |||
| Inventory, April 30 (600 units) | (16,200) | |||
| Total cost of goods sold | (91,800) | |||
| Gross profit | $37,400 | |||
| Selling and administrative expenses | (22,810) | |||
| Operating income | $14,590 | |||
If the fixed manufacturing costs were $28,080 and the fixed selling and administrative expenses were $11,170, 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 | ||
| $ | ||
| Variable cost of goods sold: | ||
| $ | ||
| $ | ||
| $ | ||
| Fixed costs: | ||
| $ | ||
| $ | ||
Solutions
Expert Solution
Joplin Company
Variable Costing Income Statement
For the Month Ended April 30
| $ | $ | |
|---|---|---|
| Sales | 129,200 | |
| Variable Cost of goods Sold: | ||
| Variable Cost of goods manufactured (W. Note 1) | 79,920 | |
| Inventory, April 30 (W. Note 2) | (11,988) | |
| Total variable cost of goods Sold | (67,932) | |
| Manufacturing Margin | 61,268 | |
| Variable selling and administrative expenses (W. Note 3) | (11,640) | |
| Contribution Margin | 49,628 | |
| Fixed manufacturing costs | 28,080 | |
| Fixed selling and administrative expenses | 11,170 | (39,250) |
| Operating Income | $10,378 |
W. Note: 1
Variable cost of goods manufactured = Total manufacturing cost - Fixed manufacturing costs
= $108,000 - $28,080
= $79,920
W. Note: 2
Variable cost per unit = $79,920 / 4,000 units
= $19.98
So Inventory, April 30 = 600 units * $19.98
= $11,988
W. Note: 3
Variable selling and administrative expenses = Total selling and administrative expenses - Fixed selling and administrative expenses
= $22,810 - $11,170
= $11,640
ekkarill92 answered 1 year agoRelated Solutions
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