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Variable Costing Income Statement

On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept:

Line Item Description	Amount	Amount
Sales (275,000 units)		$4,950,000
Cost of goods sold:
Cost of goods manufactured (300,000 units)	$4,050,000
Inventory, April 30 (25,000 units)	(337,500)
Total cost of goods sold		(3,712,500)
Gross profit		$1,237,500
Selling and administrative expenses		(275,000)
Operating income		$962,500

If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were $165,000, prepare an income statement according to the variable costing concept.

Line Item Description	Amount	Amount
Contribution marginInventoryManufacturing marginOperating incomeSales		$- Select -
Variable cost of goods sold:
Manufacturing marginSalesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses	$- Select -
Contribution marginFixed manufacturing costsFixed selling and administrative expensesInventory, April 30Sales	- Select -
InventorySalesTotal variable cost of goods manufacturedTotal variable cost of goods soldTotal variable selling and administrative expenses		- Select -
Contribution marginFixed selling and administrative expensesInventoryManufacturing marginSales		$- Select -
Contribution marginSalesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses		- Select -
Contribution marginFixed manufacturing costsFixed selling and administrative expensesInventoryManufacturing margin		$- Select -
Fixed costs:
Fixed inventoryFixed manufacturing costsFixed salesVariable cost of goods manufacturedVariable cost of goods sold	$- Select -
Fixed inventoryFixed selling and administrative expensesVariable cost of goods manufacturedVariable cost of goods soldVariable selling and administrative expenses	- Select -	blank
Contribution marginManufacturing marginOperating incomeSalesTotal fixed costs		- Select -
Operating incomeLoss from operations		$- Select -

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