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Question - 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 (2,900 units)
$95,700
Cost of goods sold:
Cost of goods manufactured (3,400 units)
$78,200
Inventory, April 30 (500 units)
(11,500)
Total cost of goods sold
(66,700)
Gross profit
$29,000
Selling and administrative expenses
(15,760)
Operating income
$13,240
If the fixed manufacturing costs were $15,640 and the fixed selling and administrative expenses were $7,720, prepare an income statement according to the variable costing concept.
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