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:Line Item DescriptionAmountAmountSales (13,400 units) $750,400 Variable cost of goods sold: Variable cost of goods manufactured$343,200 Inventory, October 31 (2,200 units)(48,400) Total variable cost of goods sold (294,800)Manufacturing margin $455,600 Variable selling and administrative expenses (201,000)Contribution margin $254,600 Fixed costs: Fixed manufacturing costs$62,400 Fixed selling and administrative expenses53,600 Total fixed costs (116,000)Operating income $138,600 Prepare an income statement under absorption costing. Round all final answers to whole dollars.Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31Line Item DescriptionAmountAmount $SalesCost of goods sold: $Cost of goods manufactured Inventory, October 31 Total cost of goods sold $Gross profit Selling and administrative expenses $Operating income

The income statement is prepared using various methods as variable costing and absorption costing.…

Answered: On October 31, the end of the first…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...

See similar textbooks

Related questions

Question

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:

Line Item Description	Amount	Amount
Sales (13,400 units)		$750,400
Variable cost of goods sold:
Variable cost of goods manufactured	$343,200
Inventory, October 31 (2,200 units)	(48,400)
Total variable cost of goods sold		(294,800)
Manufacturing margin		$455,600
Variable selling and administrative expenses		(201,000)
Contribution margin		$254,600
Fixed costs:
Fixed manufacturing costs	$62,400
Fixed selling and administrative expenses	53,600
Total fixed costs		(116,000)
Operating income		$138,600

Prepare an income statement under absorption costing. Round all final answers to whole dollars.

Maryville Equipment CompanyAbsorption Costing Income StatementFor the Month Ended October 31

Line Item Description	Amount	Amount
		$Sales
Cost of goods sold:
	$Cost of goods manufactured
	Inventory, October 31
		Total cost of goods sold
		$Gross profit
		Selling and administrative expenses
		$Operating income

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions