Absorption Costing Income StatementOn October 31, the end of the first month of operationsMaryville Equipment Company prepared the followingincome statement, based on the variable costing conceMaryville Equipment CompanyVariable Costing Income StatementFor the Month Ended October 31Sales (8,700 units)Variable cost of goods sold:Variable cost of goods manufacturedInventory, October 31 (2,600 units)Total variable cost of goods soldManufacturing marginVariable selling and administrative expensesContribution marginFixed costs:Fixed manufacturing costsFixed selling and administrative expensesTotal fixed costsOperating incomeCompanyAbsorption Costing IncomeStatementFor the Month Ended October31$293,800(67,600)Cost of goods sold:$56,50034,800$556,800Prepare an income statement under absorption costingRound all final answers to whole dollars.Maryville Equipment(226,200)$330,600(147,900)$182,700(91,300)$91,400

Companies value work-in-progress and inventory using one of two accounting techniques: absorption…

Prepare an income statement under absorption costing Round all final answers to whole dollars. Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold:

Prepare an income statement under absorption costing Round all final answers to whole dollars. Maryville Equipment Company Absorption Costing Income Statement For the Month Ended October 31 Cost of goods sold:

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 3BE: Variable costingsales exceed production The beginning inventory is 52,800 units. All of the units...

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

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 conce
Maryville Equipment Company
Variable Costing Income Statement
For the Month Ended October 31
Sales (8,700 units)
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, October 31 (2,600 units)
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
Company
Absorption Costing Income
Statement
For the Month Ended October
31
$293,800
(67,600)
Cost of goods sold:
$56,500
34,800
$556,800
Prepare an income statement under absorption costing
Round all final answers to whole dollars.
Maryville Equipment
(226,200)
$330,600
(147,900)
$182,700
(91,300)
$91,400

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