Variable Costing Income Statement On November 30, the end of the first month of
ID: 2561360 • Letter: V
Question
Variable Costing Income Statement
On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept:
Assume the fixed manufacturing costs were $29,808 and the fixed selling and administrative expenses were $14,200.
Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
Weatherford CompanyAbsorption Costing Income Statement
For the Month Ended November 30 Sales (6,300 units) $163,800 Cost of goods sold: Cost of goods manufactured (7,200 units) $129,600 Inventory, November 30 (1,000 units) 18,000 Total cost of goods sold 111,600 Gross profit $52,200 Selling and administrative expenses 28,990 Income from operations $23,210
Explanation / Answer
Amount in $ Particulars Working Per unit Total Per unit sale price 163800/6300 26 163,800 Cost of goods manufactured 129,600 - Fixed manufactured costs 29,808 Variable cost of goods manufactured 99,792 Variable cost of goods manufactured per unit 99,792/7,200 13.86 87,318 Fixed manufactured cost 29,808 Gross profit 46,674 Selling & Admin exp - fixed 14,200 - variable 14,790 Income from operations 17,684 Closing stock value as per variable costing 1,000*13.86 13860
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