Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1. Additional information follows:
Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required: Prepare a variable costing income statement for the same period.

Question

Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1.  Additional information follows:
Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required: Prepare a variable costing income statement for the same period.

Quizplus · Accepted Answer

The Answer of Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1.  Additional information follows:
Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.
Required: Prepare a variable costing income statement for the same period.