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 CompanyAbsorption Costing Income StatementFor the Month Ended April 30Sales (6,600 units) $178,200 Cost of goods sold: Cost of goods manufactured (7,700 units)$146,300 Inventory, April 30 (1,100 units)(20,900) Total cost of goods sold (125,400) Gross profit $52,800 Selling and administrative expenses (32,280) Operating income $20,520 If the fixed manufacturing costs were $39,501 and the fixed selling and administrative expenses were $15,810, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.Joplin CompanyVariable Costing Income StatementFor the Month Ended April 30 $SalesVariable cost of goods sold: $Variable cost of goods manufactured Inventory, April 30 Total variable cost of goods sold $- Select - - Select - $- Select -Fixed costs: $- Select - - Select - - Select - $- Select - Feedback Area Feedback

Answer:- Income statement meaning:- Income statement is basically part of the financial statement…

Answered: On April 30, the end of the first month…

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 9E: The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the...

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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 (6,600 units)		$178,200
Cost of goods sold:
Cost of goods manufactured (7,700 units)	$146,300
Inventory, April 30 (1,100 units)	(20,900)
Total cost of goods sold		(125,400)
Gross profit		$52,800
Selling and administrative expenses		(32,280)
Operating income		$20,520

Joplin CompanyVariable Costing Income StatementFor 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

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Sales - (Variable Cost of Goods Manufactured* - Variable Costing Ending inventory**) = Manufacturing Margin; Manufacturing Margin - Variable Selling and Administrative Expenses = Contribution Margin; Contribution Margin - (Fixed Manufacturing Costs + Fixed Selling and Administrative Expenses) = Operating income

*Variable Cost of Goods Manufactured = Total Cost of Goods Manufactured - Fixed Manufacturing Cost

**Variable Costing Ending Inventory = (Variable Cost of Goods Manufactured/Total Units of Goods Manufactured) x Absorption Costing Ending Inventory Units (given)

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