Prepare an income statement

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Question - 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 (5,900 units)


$171,100

Cost of goods sold:



Cost of goods manufactured (6,800 units)

$142,800


Inventory, April 30 (1,000 units)

(21,000)


Total cost of goods sold


(121,800)

Gross profit


$49,300

Selling and administrative expenses


(29,690)

Operating income


$19,610

Required - If the fixed manufacturing costs were $35,700 and the fixed selling and administrative expenses were $14,540, prepare an income statement according to the variable costing concept.

Reference no: EM133118874

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