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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 (3,800 units)   $125,400    Cost of goods sold:     Cost of goods manufactured (4,500 units) $103,500      Inventory, April 30 (600 units) (13,800)     Total cost of goods sold   (89,700)   Gross profit   $35,700    Selling and administrative expenses   (20,640)   Operating income   $15,060    If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

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 (3,800 units)   $125,400    Cost of goods sold:     Cost of goods manufactured (4,500 units) $103,500      Inventory, April 30 (600 units) (13,800)     Total cost of goods sold   (89,700)   Gross profit   $35,700    Selling and administrative expenses   (20,640)   Operating income   $15,060    If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Cost Behavior And Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.26EX: Items on variable costing income statement In the following equations, based on the variable costing...
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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 (3,800 units)   $125,400   
Cost of goods sold:    
Cost of goods manufactured (4,500 units) $103,500     
Inventory, April 30 (600 units) (13,800)    
Total cost of goods sold   (89,700)  
Gross profit   $35,700   
Selling and administrative expenses   (20,640)  
Operating income   $15,060   

If the fixed manufacturing costs were $22,770 and the fixed selling and administrative expenses were $10,110, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.

Variable Costing Income Statement For the Month Ended April 30 Sales Variable cost of goods sold: Variable cost of goods manufactured 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 %24
Transcribed Image Text:Variable Costing Income Statement For the Month Ended April 30 Sales Variable cost of goods sold: Variable cost of goods manufactured 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 %24
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