Absorption Costing Income Statement 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: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units) $7,920,000 Variable cost of goods sold: Variable cost of goods manufactured $6,360,000 Inventory, October 31 (45,000 units) (1,080,000) Total variable cost of goods sold (5,280,000) Manufacturing margin $2,640,000 Variable selling and administrative expenses (330,000) Contribution margin $2,310,000 Fixed costs: Fixed manufacturing costs $530,000 Fixed selling and administrative expenses 100,000 Total fixed costs (630,000) $1,680,000 Operating income Prepare an income statement under absorption costing Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold:

Question
Absorption Costing Income Statement
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:
Maryville Equipment Company
Variable Costing Income Statement
For the Month Ended October 31
Sales (220,000 units)
$7,920,000
Variable cost of goods sold:
Variable cost of goods manufactured
$6,360,000
Inventory, October 31 (45,000 units)
(1,080,000)
Total variable cost of goods sold
(5,280,000)
Manufacturing margin
$2,640,000
Variable selling and administrative expenses
(330,000)
Contribution margin
$2,310,000
Fixed costs:
Fixed manufacturing costs
$530,000
Fixed selling and administrative expenses
100,000
Total fixed costs
(630,000)
$1,680,000
Operating income

Image Transcription

Absorption Costing Income Statement 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: Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Sales (220,000 units) $7,920,000 Variable cost of goods sold: Variable cost of goods manufactured $6,360,000 Inventory, October 31 (45,000 units) (1,080,000) Total variable cost of goods sold (5,280,000) Manufacturing margin $2,640,000 Variable selling and administrative expenses (330,000) Contribution margin $2,310,000 Fixed costs: Fixed manufacturing costs $530,000 Fixed selling and administrative expenses 100,000 Total fixed costs (630,000) $1,680,000 Operating income

Prepare an income statement under absorption costing
Maryville Equipment Company
Absorption Costing Income Statement
For the Month Ended October 31
Cost of goods sold:

Image Transcription

Prepare an income statement under absorption costing Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold:

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