Extracted text: Selling and Administrative Expenses 759,000 Net Income 726,000 Feedback B. Prepare an income statement under variable costing. Walrus Co. Variable Costing Income Statement Sales 5,500,000 Variable Cost of Goods Sold: Direct Material 1,980,000 Direct Labor 1,584,000 Variable Overhead 924,000 4,488,000 Ending Inventory 748,000 Total Variable Cost of Goods Sold 3,740,000 Variable Selling Expenses 286,000 Contribution Margin 9,526,000 X Fixed Expenses: Fixed Manufacturing Overhead 330,000 Fixed Administrative Expenses 473,000 803,000 Net Income 682,000
Extracted text: Summarized data for Walrus Co. for its first year of operations are: Sales (110,000 units) $5,500,000 Production Costs (132,000 units): Direct Material 1,980,000 Direct Labor 1,584,000 Manufacturing Overhead: Variable 924,000 Fixed 330,000 Selling and Administrative Expenses: Variable 286,000 Fixed 473,000 A. Prepare an income statement under absorption costing. Walrus Co. Absorption Costing Income Statement Sales 5,500,000 Cost of Goods Sold: Direct Material 1,980,000 Direct Labor 1,584,000 Variable Overhead 924,000 Fixed Overhead 330,000 2$ 4,818,000 Ending Inventory 803,000