Variable Costing Income StatementOn April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:Joplin CompanyAbsorption Costing Income StatementFor the Month Ended April 30Sales (275,000 units) $4,950,000 Cost of goods sold: Cost of goods manufactured (300,000 units)$4,050,000 Inventory, April 30 (25,000 units)(337,500) Total cost of goods sold (3,712,500) Gross profit $1,237,500 Selling and administrative expenses (275,000) Operating income $962,500 If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept.Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30 $- Select -Variable cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - $- Select -Fixed costs: $- Select - - Select - - Select - $- Select -

Calculation of unit product cost under variable costing: Unit product cost under absorption…

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...

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Variable Costing Income Statement

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 (275,000 units)		$4,950,000
Cost of goods sold:
Cost of goods manufactured (300,000 units)	$4,050,000
Inventory, April 30 (25,000 units)	(337,500)
Total cost of goods sold		(3,712,500)
Gross profit		$1,237,500
Selling and administrative expenses		(275,000)
Operating income		$962,500

If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept.

Joplin Company
Variable Costing Income Statement
For the Month Ended April 30

		$- Select -
Variable cost of goods sold:
	$- Select -
	- Select -
		- Select -
		$- Select -
		- Select -
		$- Select -
Fixed costs:
	$- Select -
	- Select -
		- Select -
		$- Select -