On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (6,100 units) Cost of goods sold: Cost of goods manufactured (7,000 units) Inventory, November 30 (1,000 units) Total cost of goods sold Gross profit Selling and administrative expenses Income from operations $161,000 Sales Variable cost of goods sold: Variable cost of goods manufactured (23,000) $201,300 138,000 $63,300 35,910 $27,390 Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,590. Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Weatherford Company Variable Costing Income Statement For the Month Ended November 30 201,300
On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (6,100 units) Cost of goods sold: Cost of goods manufactured (7,000 units) Inventory, November 30 (1,000 units) Total cost of goods sold Gross profit Selling and administrative expenses Income from operations $161,000 Sales Variable cost of goods sold: Variable cost of goods manufactured (23,000) $201,300 138,000 $63,300 35,910 $27,390 Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,590. Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Weatherford Company Variable Costing Income Statement For the Month Ended November 30 201,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept:
Weatherford Company
Absorption Costing Income Statement
For the Month Ended November 30
Sales (6,100 units)
Cost of goods sold:
Cost of goods manufactured (7,000 units)
Inventory, November 30 (1,000 units)
Total cost of goods sold
Gross profit
$161,000
Sales
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, November 30
(23,000)
$201,300
138,000
$63,300
Selling and administrative expenses
35,910
Income from operations
$27,390
Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,590
Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
Weatherford Company
Variable Costing Income Statement
For the Month Ended November 30
201,300

Transcribed Image Text:>
Gross pront
Selling and administrative expenses
Income from operations
Assume the fixed manufacturing costs were $38,640 and the fixed selling and administrative expenses were $17,59
Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
Weatherford Company
Variable Costing Income Statement
For the Month Ended November 30
Sales
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, November 30
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
$50,00
35,910
$27,390
Income from operations
201,300
0000
3
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