On July 31, the end of the first month of oeprations, Rhys Company prepared the

Question

On July 31, the end of the first month of oeprations, Rhys Company prepared the following income statement, based on the absorption costing concept:

I need what is required and I also need the ending inventory since the system counted 747,000 as wrong

Variable costing income statement Instructions Labels and Amount Descriptions Income Statement Reconciliation Instructions On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Rhys Company Income Statement Absorption Costing For the Month Ended July 31 Sales (96,000 units) 4,440,000.00 1 2 Cost of goods sold $3,120,000.00 Cost of goods manufactured Less ending inventory (24,000 units) Cost of goods sold 3 4 624,000.00 2,496,000.00 $1,944,000.00 288,000.00 $1,656,000.00 Gross profit 7 Selling and administrative expenses 8 Income from operations

Explanation / Answer

income statement-variable costing sales 4,440,000 Variable cost of goods sold variable cost of goods manufactured (120000*24.90)= 2988000 less ending inventory (24000*24.90)= 597600 variabel cost of goods sold 2390400 manufacturing margin 2,049,600 variable selling and administrative expense 115,200 contribution margin 1,934,400 fixed costs: fixed manufacturing costs 132,000 fixed selling & administrative expense 172,800 income from operations 1,629,600 B) Absorption costing income from operations 1,656,000 variable costing income from operations 1,629,600 Difference 26,400

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