Prepare variable-costing income statement

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Problem - Illuminate Bright Light (IBL), a producer of energy-efficient light bulbs prepared the following absorption costing income statement for the year ended May 31, 2019:

Sale (16,000 units) $320,000

Cost of Goods sold 216,000

Gross margin $104,000

Selling and administrative expensive 46,000

Operating Income $58,000

Additional Information - Selling and administrative expensive include $1.50 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $11 per unit. Actual Fixed costs were equal to budgeted fixed costs.

Required - Prepare variable-costing income statement for the same period.

Reference no: EM132470581

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