Question

# Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford...

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:

 Weatherford Company Absorption Costing Income Statement For the Month Ended November 30 Sales (2,900 units) \$81,200 Cost of goods sold: Cost of goods manufactured (3,400 units) \$68,000 Inventory, November 30 (500 units) (10,000) Total cost of goods sold 58,000 Gross profit \$23,200 Selling and administrative expenses 13,820 Income from operations \$9,380

Assume the fixed manufacturing costs were \$16,320 and the fixed selling and administrative expenses were \$6,770.

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 Sales \$ Variable cost of goods sold: Variable cost of goods manufactured \$ Inventory, November 30 Total variable cost of goods sold Manufacturing margin \$ Variable selling and administrative expenses Contribution margin \$ Fixed costs: Fixed manufacturing costs \$ Fixed selling and administrative expenses Total fixed costs Income from operations \$

variable costing income statement :

 Sales 81200 Variable cost of goods sold: Variable cost of goods manufactured (68000-16320) 51680 Inventory, November 30 (51680*500/3400) 7600 Total variable cost of goods sold 44080 Manufacturing margin 37120 Variable selling and administrative expenses 7050 Contribution margin 30070 Fixed costs Fixed manufacturing costs 16320 Fixed selling and administrative expenses 6770 Total fixed cost 23090 Income from operations 6980

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