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 (3,800 units) $125,400 Cost of goods sold: Cost of goods manufactured (4,500 units) $103,500 Inventory, April 30 (600 units) (13,800) Total cost of goods sold (89,700) Gross profit $35,700 Selling and administrative expenses (20,640) Operating income $15,060 If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, 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 SALES $ Variable cost of goods sold: VARAIBLE COST OF GOODS MANUFACTURED $ APRIL 30 INVENTORY 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 3E: Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began...

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Question

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 (3,800 units)		$125,400
Cost of goods sold:
Cost of goods manufactured (4,500 units)	$103,500
Inventory, April 30 (600 units)	(13,800)
Total cost of goods sold		(89,700)
Gross profit		$35,700
Selling and administrative expenses		(20,640)
Operating income		$15,060

If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, 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

SALES		$
Variable cost of goods sold:
VARAIBLE COST OF GOODS MANUFACTURED	$
APRIL 30 INVENTORY
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