Prepare an income statement using variable costing

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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 21,600 units, and 2,800 units remain in ending finished goods inventory for May. Fixed overhead was $54,000. Variable selling and administration expenses were $38,000 and fixed selling and administrative expenses were $18,000.

Sales (18,800 units) $470,000

Cost of goods sold 388,000

Gross profit 82,000

Selling and administrative expenses 56,000

Income $26,000

Required - Prepare an income statement using variable costing.

Reference no: EM133171708

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