Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (14,000 units) $1,134,000 Cost of goods sold: Cost of goods manufactured $871,250 Less ending inventory (3,000 units) 153,750 Cost of goods sold 717,500 Gross profit $416,500 Selling and administrative expenses 79,000 Income from operations $337,500 Question Content Area a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $51,000 and the variable selling and administrative expenses were $36,000. In your computations, round unit costs to two decimal places
Variable Costing Income Statement On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (14,000 units) $1,134,000 Cost of goods sold: Cost of goods manufactured $871,250 Less ending inventory (3,000 units) 153,750 Cost of goods sold 717,500 Gross profit $416,500 Selling and administrative expenses 79,000 Income from operations $337,500 Question Content Area a. Prepare a variable costing income statement, assuming that the fixed
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