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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 (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.

User Louis LC
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Answer:

Variable cost income statement is given as an attachment below in form of a table for better understanding

On April 30, the end of the first month of operations, Joplin Company prepared the-example-1
User GeralexGR
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