Make variable-costing income statement for the same period

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Problem - Illuminate Bright Light (IBL), a producer of energy-efficient light bulbs prepared the following absorption costing income statement for the year ended May 31, 2019.

Sales (16,000 units) $320,000

Cost of goods sold $216,000

Gross margin $104,000

Selling and administrative expenses 46,000

Operating income $58,000

Additional information follows:

Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs.

Required - Make variable-costing income statement for the same period.

Reference no: EM132471807

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