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Question - Dion Company reports the absorption costing income statement below for May. The company began the month with no finished goods inventory. Dion produced 20,400 units, and 2,200 units remain in ending finished goods inventory for May. Fixed overhead was $51,000. Variable selling and administration expenses were $32,000 and fixed selling and administrative expenses were $12,000.
Sales (18,200 units) $455,000
Cost of goods sold 392,000
Gross profit 63,000
Selling and administrative expenses 44,000
Income $19,000
Required - Prepare an income statement using variable costing.
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