Variable Costing Income Statement On November 30, the end of the first month of operations, Weatherford Company...

3.7 Ratings (646 Votes)

Answer:

Variable costing Income statement
For the month ended November 30

Sales		$52,500
Variable cost of goods sold:
Variable cost of goods manufactured	34,365		(43,500-9,135)
Inventory, November 30	(4,740)		(43,500-9,135)/2,900*400
Total Variable cost of goods sold		29,625
Manufacturing margin		22,875
Variable selling and administrative expenses		(4,350)	=8,530-4,180
Contribution margin		18,525
Fixed costs:
Fixed manufacturing costs	9,135
Fixed selling and administrative expenses	4,180
Total fixed costs		13,315
Income from operations		5,210

Notes:

Unit manufactured = 2,500 unit sold+ 400 ending inventory - 0 beginning inventory = 2,900 units

Variable cost of goods manufactured = Total cost of goods manufactured -fixed manufacturing cost

= 43,500-9,135

= 34,365

Variable selling and administrative cost = 8,530-4,180 = 4,350

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

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

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		$

Other questions asked by students