Financial and Managerial Accounting: E20-5 On June 30, the end of the first month of operations

Financial and Managerial Accounting
Ex20-5 Variable costing income statement
On June 30, the end of the first month of operations, Volker Energy Company prepared the following income statement, based on the absorption costing concept:
VOLKER ENERGY COMPANY
Absorption Costing Income Statement
For the Month Ended June 30, 2011
Sales (4,800 units) 134,400
Costs of goods sold:
Cost of goods manufactured (5,600 units) 112,000
Less inventory, June 30 (5,600) 16,000
Costs of goods sold 96,000
Gross profit 38,400
Selling and administrative expenses 22,550
Income from operations $15,850

If the fixed manufacturing costs were $25,200 and the variable selling and administrative expenses were $11,400, prepare an income statement according to the variable costing concept. Enter all amounts as positive numbers.
Powered by