Solution-Prepare an income statement under absorption

Prepare an income statement under absorption costing

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Reference no: EM131787308

Question - On May 31, the end of the first month of operations, Trendwest Office Equipment Company prepared the following income statement, based on the variable costing concept:

Trendwest Office Equipment Company Variable Costing Income Statement For the Month Ended May 31, 2010
Sales		$648,000
Variable cost of goods sold:
Variable cost of goods manufactured	$311,040
Less inventory, May 31 (2,400 units)	51,840
Variable cost of goods sold		259,200
Manufacturing margin		$388,800
Variable selling and administrative expenses		168,000
Contribution margin		$220,800
Fixed costs:
Fixed manufacturing costs	$64,800
Fixed selling and administrative expenses	51,840	116,640
Income form operations		$104,160

Required - Prepare an income statement under absorption costing. Enter all amounts as positive numbers.

Reference no: EM131787308

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Prepare an income statement under absorption costing

Reference no: EM131787308

Reference no: EM131787308

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