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 (2,500 units) $80,000 Cost of goods sold: Cost of goods manufactured (2,900 units) $66,700 Inventory, April 30 (400 units) (9,200) Total cost of goods sold (57,500) Gross profit $22,500 Selling and administrative expenses (13,520) Operating income $8,980 If the fixed manufacturing costs were $16,008 and the fixed selling and administrative expenses were $6,620, prepare an income statement according to the variable costing concep
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 (2,500 units) $80,000 Cost of goods sold: Cost of goods manufactured (2,900 units) $66,700 Inventory, April 30 (400 units) (9,200) Total cost of goods sold (57,500) Gross profit $22,500 Selling and administrative expenses (13,520) Operating income $8,980 If the fixed manufacturing costs were $16,008 and the fixed selling and administrative expenses were $6,620, prepare an income statement according to the variable costing concep
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 (2,500 units) | $80,000 | ||
| Cost of goods sold: | |||
| Cost of goods manufactured (2,900 units) | $66,700 | ||
| Inventory, April 30 (400 units) | (9,200) | ||
| Total cost of goods sold | (57,500) | ||
| Gross profit | $22,500 | ||
| Selling and administrative expenses | (13,520) | ||
| Operating income | $8,980 |
If the fixed
Transcribed Image Text:Joplin Company
Variable Costing Income Statement
For the Month Ended April 30
Sales
$
80,000
Variable cost of goods sold:
Variable cost of goods manufactured
50,692
Inventory, April 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
Operating income
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