Answer:
a. Joplin Industries Inc.
Absorption Costing Income Statement
For the Month Ended June 30
Sales $81,000,000
Less: Beginning inventory $4,387,200
Cost of goods manufactured <u>$45,756,000</u>
Cost of goods sold <u>$50,143,200</u>
Gross Profit $30,856,800
Selling and Administrative Expenses <u>$13,122,000</u>
Operating Income <u>$17,734,800</u>
b. Joplin Industries Inc.
Variable Costing Income Statement
For the Month Ended June 30
Sales $81,000,000
Variable cost of goods sold <u>$40,500,000</u>
Manufacturing Margin $40,500,000
Selling and Administrative Expenses <u>$12,150,000</u>
Contribution Margin $28,350,000
<u>Fixed cost</u>
Manufacturing cost $8,856,000
Selling and Admin Expenses <u>$972,000</u>
Total Fixed cost <u>$9,828,000</u>
Operating Income <u>$18,522,000</u>
