Solution-Prepare a variable costing income statement for

Prepare a variable costing income statement for the year

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Reference no: EM132229596

Question - Worthington Industries manufactures and sells a single product. The controller has prepared the following income statement for the most recent year:

Worthington Industries Traditional Income Statement (Absorption Costing) For the Year Ended December 31
Sales revenue	$603,000
Less: Cost of goods sold	522,000
Gross profit	$81,000
Less: Operating expenses	70,000
Operating income	$11,000

The company produced 12,000 units and sold 9,000 units during the year ending December 31. Fixed manufacturing overhead (MOH) for the year was $216,000, within fixed operating expenses were $54,000. The company had no beginning inventory.

Requirements -

1. Will the?company's operating income under variable costing be ?higher, lower, or the same as its operating income under absorption? costing? Why?

2. Prepare a variable costing income statement for the year.

Reference no: EM132229596

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Prepare a variable costing income statement for the year

Reference no: EM132229596

Reference no: EM132229596

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