Answered: On April 30, the end of the first month…

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter21: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...

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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 manufacturing costs were $16,008 and the fixed selling and administrative expenses were $6,620, 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
$
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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