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 (4,000 units) $60,000 Cost of goods sold: Cost of goods manufactured (4,700 units) $51,700 Inventory, April 30 (700 units) (7,700) Total cost of goods sold (44,000) Gross profit $16,000 Selling and administrative expenses (9,230) Operating income $6,770 If the fixed manufacturing costs were $10,340 and the fixed selling and administrative expenses were $4,520, prepare an income statement according to the variable

FINANCIAL ACCOUNTING
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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:
Joplin Company
Absorption Costing Income Statement
For the Month Ended April 30
Sales (4,000 units)
$60,000
Cost of goods sold:
Cost of goods manufactured (4,700 units)
$51,700
Inventory, April 30 (700 units)
(7,700)
Total cost of goods sold
(44,000)
Gross profit
$16,000
Selling and administrative expenses
(9,230)
Operating income
$6,770
If the fixed manufacturing costs were $10,340 and the fixed selling and administrative expenses were $4,520, prepare an income statement according to the variable
costing concept. Round all final answers to whole dollars.
Transcribed Image Text: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 (4,000 units) $60,000 Cost of goods sold: Cost of goods manufactured (4,700 units) $51,700 Inventory, April 30 (700 units) (7,700) Total cost of goods sold (44,000) Gross profit $16,000 Selling and administrative expenses (9,230) Operating income $6,770 If the fixed manufacturing costs were $10,340 and the fixed selling and administrative expenses were $4,520, 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:
Transcribed Image Text:Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: Fixed costs:
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