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) $98,600 Cost of goods sold: Cost of goods manufactured (3,900 units) $81,900 Inventory, April 30 (500 units) (10,500) Total cost of goods sold (71,400) Gross profit $27,200 Selling and administrative expenses (16,500) Operating income $10,700 If the fixed manufacturing costs were $19,656 and the fixed selling and administrative expenses were $8,080, 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 $fill in the blank 2 Variable cost of goods sold: $fill in the blank 4 fill in the blank 6 fill in the blank 8 $fill in the blank 10 fill in the blank 12 $fill in the blank 14 Fixed costs: $fill in the blank 16 fill in the blank 18 fill in the blank 20 $fill in the blank 22
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
ariable 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) | $98,600 | ||
| Cost of goods sold: | |||
| Cost of goods manufactured (3,900 units) | $81,900 | ||
| Inventory, April 30 (500 units) | (10,500) | ||
| Total cost of goods sold | (71,400) | ||
| Gross profit | $27,200 | ||
| Selling and administrative expenses | (16,500) | ||
| Operating income | $10,700 |
If the fixed
| Joplin Company | ||
| Variable Costing Income Statement | ||
| For the Month Ended April 30 | ||
| $fill in the blank 2 | ||
| Variable cost of goods sold: | ||
| $fill in the blank 4 | ||
| fill in the blank 6 | ||
| fill in the blank 8 | ||
| $fill in the blank 10 | ||
| fill in the blank 12 | ||
| $fill in the blank 14 | ||
| Fixed costs: | ||
| $fill in the blank 16 | ||
| fill in the blank 18 | ||
| fill in the blank 20 | ||
| $fill in the blank 22 |
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