n November 30, the end of the first month of operations, Weatherford Company pre

Question

n November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (4,100 units) $94,300 Cost of goods sold: Cost of goods manufactured (4,700 units) $75,200 Inventory, November 30 (700 units) 11,200 Total cost of goods sold 64,000 Gross profit $30,300 Selling and administrative expenses 16,050 Income from operations $14,250 Assume the fixed manufacturing costs were $15,040 and the fixed selling and administrative expenses were $7,860. Prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Weatherford Company Variable Costing Income Statement For the Month Ended November 30 $ Variable cost of goods sold: $ $ $ Fixed costs: $

Explanation / Answer

Weatherford Company Variable Costing Income Statement For the Month Ended November 30 Sales revenue 94300 Variable expenses: Variable cost of goods sold (64000 - 15040) 48960 Selling and adminstrative expenses (16050 - 7860) 8190 Total variable expenses 57150 Contribution margin 37150 Fixed expenses: Manufacturing overheads 15040 Selling and adminstrative expenses 7860 Total fixed expenses 22900 Income from operations $ 14250

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