1 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 concept: Sales (14,000 units) Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 (1,800 units) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Absorption Costing Income Statement For the Month Ended October 31 Line Item Description Sales V Cost of goods sold: $284,400 (32,400) Cost of goods manufactured Inventory, October 31 ✔ Total cost of goods sold IGV Gross profit DV Selling and administrative expenses DV Operating income ✔ $63,200 42,000 $63,200 42,000 Prepare an income statement under absorption costing. Round all final answers to whole dollars. Maryville Equipment Company $616,000 Amount Amount (252,000) $364,000 (154,000) $210,000 (105,200) $104,800 (105,200) $104,800
1 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 concept: Sales (14,000 units) Variable cost of goods sold: Variable cost of goods manufactured Inventory, October 31 (1,800 units) Total variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Maryville Equipment Company Variable Costing Income Statement For the Month Ended October 31 Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs Operating income Absorption Costing Income Statement For the Month Ended October 31 Line Item Description Sales V Cost of goods sold: $284,400 (32,400) Cost of goods manufactured Inventory, October 31 ✔ Total cost of goods sold IGV Gross profit DV Selling and administrative expenses DV Operating income ✔ $63,200 42,000 $63,200 42,000 Prepare an income statement under absorption costing. Round all final answers to whole dollars. Maryville Equipment Company $616,000 Amount Amount (252,000) $364,000 (154,000) $210,000 (105,200) $104,800 (105,200) $104,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 concept:
Sales (14,000 units)
Variable cost of goods sold:
Variable cost of goods manufactured
Inventory, October 31 (1,800 units)
Total variable cost of goods sold
Maryville Equipment Company
Variable Costing Income Statement
For the Month Ended October 31
Manufacturing margin
Variable selling and administrative expenses
Contribution margin
Fixed costs:
Fixed manufacturing costs
Fixed selling and administrative expenses
Total fixed costs
Operating income
Fixed costs:
Fixed manufacturing costs
Fixed selling and administrative expenses
Total fixed costs
Operating income
Line Item
Sales
Absorption Costing Income Statement
For the Month Ended October 31
Description
✔
Cost of goods sold:
Cost of goods manufactured
Inventory, October 31
Total cost of goods sold
Prepare an income statement under absorption costing. Round all final answers to whole dollars.
Maryville Equipment Company
V
$284,400
(32,400)
✔
Gross profit DV
Selling and administrative expenses
Operating income
$63,200
42,000
$63,200
42,000
Amount
$616,000
Amount
(252,000)
$364,000
(154,000)
$210,000
(105,200)
$104,800
(105,200)
$104,800
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