Joplin Company Absorption Costing Income Statement For the Month Ended April 30 $ 4,950,000 Sales (275,000 units)... Cost of goods sold: Cost of goods manufactured (300,000 units). Inventory, April 30 (25,000 units)..... Total cost of goods sold.... Gross profit.... Selling and administrative ex penses . Operating Income.. $4,050,000 (337,500) ..... (3,712,500) $1,237,500 (275,000) $ 962,500 ... ........

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On April 30, the end of the first month of operations, Joplin Company prepared the
following income statement, based on the absorption costing concept:
If the fixed manufacturing costs were $450,000 and the fixed selling and
administrative expenses were $165,000, prepare an income statement according to the
variable costing concept

Joplin Company
Absorption Costing Income Statement
For the Month Ended April 30
$ 4,950,000
Sales (275,000 units)...
Cost of goods sold:
Cost of goods manufactured (300,000 units).
Inventory, April 30 (25,000 units).....
Total cost of goods sold....
Gross profit....
Selling and administrative ex penses .
Operating Income..
$4,050,000
(337,500)
.....
(3,712,500)
$1,237,500
(275,000)
$ 962,500
...
........
Transcribed Image Text:Joplin Company Absorption Costing Income Statement For the Month Ended April 30 $ 4,950,000 Sales (275,000 units)... Cost of goods sold: Cost of goods manufactured (300,000 units). Inventory, April 30 (25,000 units)..... Total cost of goods sold.... Gross profit.... Selling and administrative ex penses . Operating Income.. $4,050,000 (337,500) ..... (3,712,500) $1,237,500 (275,000) $ 962,500 ... ........
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