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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 (2,500 units)			$52,500
Cost of goods sold:
Cost of goods manufactured (2,900 units)	$43,500
Inventory, November 30 (400 units)	(6,000)
Total cost of goods sold			37,500
Gross profit			$15,000
Selling and administrative expenses			8,530
Income from operations			$6,470

Assume the fixed manufacturing costs were $9,135 and the fixed selling and administrative expenses were $4,180.

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		$

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