Question

On October 31, the end of the first month of operations, Morristown & Co. prepared the...

On October 31, the end of the first month of operations, Morristown & Co. prepared the following income statement based on absorption costing:

Morristown & Co.
Absorption Costing Income Statement
For Month Ended October 31, 20--
Sales (2,600 units) $117,000
Cost of goods sold:
   Cost of goods manufactured $85,500
   Less ending inventory (400 units) 11,400
   Cost of goods sold 74,100
Gross profit $42,900
Selling and administrative expenses 21,500
Income from operations $21,400

If the fixed manufacturing costs were $42,900 and the variable selling and administrative expenses were $14,600, prepare an income statement using variable costing.

Morristown & Co.
Variable Costing Income Statement
For Month Ended October 31, 20--
$
Variable cost of goods sold:
$
$
$
Fixed costs:
$
Income from operations $

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