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 (3,800 units) $125,400 Cost of goods sold: Cost of goods manufactured (4,500 units) $103,500 Inventory, April 30 (600 units) (13,800) Total cost of goods sold (89,700) Gross profit $35,700 Selling and administrative expenses (20,640) Operating income $15,060 If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, 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 $ Variable cost of goods sold: VARAIBLE COST OF GOODS MANUFACTURED $ APRIL 30 INVENTORY 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 $Operating income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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 (3,800 units)		$125,400
Cost of goods sold:
Cost of goods manufactured (4,500 units)	$103,500
Inventory, April 30 (600 units)	(13,800)
Total cost of goods sold		(89,700)
Gross profit		$35,700
Selling and administrative expenses		(20,640)
Operating income		$15,060

If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, 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		$
Variable cost of goods sold:
VARAIBLE COST OF GOODS MANUFACTURED	$
APRIL 30 INVENTORY
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
		$Operating income