On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept:Line Item DescriptionAmountAmountSales (13,400 units) $750,400 Variable cost of goods sold: Variable cost of goods manufactured$343,200 Inventory, October 31 (2,200 units)(48,400) Total variable cost of goods sold (294,800)Manufacturing margin $455,600 Variable selling and administrative expenses (201,000)Contribution margin $254,600 Fixed costs: Fixed manufacturing costs$62,400 Fixed selling and administrative expenses53,600 Total fixed costs (116,000)Operating income $138,600 Prepare an income statement under absorption costing. Round all final answers to whole dollars.Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31Line Item DescriptionAmountAmount $SalesCost of goods sold: $Cost of goods manufactured Inventory, October 31 Total cost of goods sold $Gross profit Selling and administrative expenses $Operating income

The income statement is prepared using various methods as variable costing and absorption costing.…

Answered: On October 31, the end of the first…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept:

Line Item Description	Amount	Amount
Sales (13,400 units)		$750,400
Variable cost of goods sold:
Variable cost of goods manufactured	$343,200
Inventory, October 31 (2,200 units)	(48,400)
Total variable cost of goods sold		(294,800)
Manufacturing margin		$455,600
Variable selling and administrative expenses		(201,000)
Contribution margin		$254,600
Fixed costs:
Fixed manufacturing costs	$62,400
Fixed selling and administrative expenses	53,600
Total fixed costs		(116,000)
Operating income		$138,600

Prepare an income statement under absorption costing. Round all final answers to whole dollars.

Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31

Line Item Description	Amount	Amount
		$Sales
Cost of goods sold:
	$Cost of goods manufactured
	Inventory, October 31
		Total cost of goods sold
		$Gross profit
		Selling and administrative expenses
		$Operating income

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