Question - 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 (2,600 units) $91,000
Cost of goods sold:
Cost of goods manufactured ( 3,100 units) $77,500
Less inventory, June 30 ( 400 units) 10,000
Cost of goods sold 67,500
Gross profit $23,500
Selling and administrative expenses 14,520
Income from operations $8,980
If the fixed manufacturing costs were $17,825 and the variable selling and administrative expenses were $7,410, prepare an income statement according to the variable costing concept. Enter all amounts as positive numbers.