sporting goods equipment under its highly recognizable J-Sports loge. The compan

Question

sporting goods equipment under its highly recognizable J-Sports loge. The company began operations on May 1 and an ending inventory of 3,200 uniks, During June, the company The June manufacturing costs and selling and administrative expesses were as follows Namber of UnitTotal UnitsCost Cost ariable 3,200 50.00 160,000 3,200 19.00 00 369.00 $220,800 Manufacturing costs in June: 32,000 50.0,600000 32000 20so 668,800 570.90 2,268,800 Variable 35,200 24.70 69,40 35,200 7.00246,400 31.70 $1,115,840 Variable a. Prepare an income statement according to the absorption costing concept for June Absorption Costing Income Statement For the Honth Fnded une 30 Cast of soods sold 5 more Check My Work utes

Explanation / Answer

Answer a. Joplin Industries Inc. Absorption Costing Income Statement For The Month Ended June 30 Amount Sales - 35,200 Units X $125    4,400,000.00 Cost of Goods Sold: Beginning Inventory            220,800.00 Manufactured in June         2,268,800.00    2,489,600.00 Gross Profit    1,910,400.00 Selling & Administrative Expenses Fixed Selling & Administrative Expenses            246,400.00 Variable Selling & Administrative Expenses            869,440.00 Total Selling & Administrative Expenses    1,115,840.00 Income From Operations        794,560.00 Answer b. Joplin Industries Inc. Variable Costing Income Statement For The Month Ended June 30 Amount Sales - 35,200 Units X $125    4,400,000.00 Variable Cost of Goods Sold - 35,200 Units X $50 1760000 Manufacturing Margin    2,640,000.00 Variable Selling & Admn. Exp - 35,200 Units X $24.70        869,440.00 Contribution Margin    1,770,560.00 Fixed Costs: Fixed Manufacturing Cost            668,800.00 Fixed Selling & Administrative Expenses            246,400.00        915,200.00 Income From Operations        855,360.00 Note: Selling and administrative expenses (both variable and fixed) are not relevant for the computation of unit product cost in both absorption costing & variable costing.

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