Question - 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:
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Volker Energy Company Absorption Costing Income Statement For the Month Ended June 30, 2011
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Sales (4,800) units
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$134,400
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Cost of goods sold:
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Cost of goods manufactured (5,600 units)
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$112,000
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Les inventory, June 30 (800 units)
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16,000
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Cost of goods sold
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96,000
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Gross profit
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$38,400
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Selling and administrative expenses
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22,550
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Income from operations
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$15,850
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Required - 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.