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Absorption and variable costing

Absorption and variable costing income statements for two months and analysis

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(Variable Costing)

Income Statement
For the Month Ending

in$
JULY AUGUST

Sales 450000 450000
Variable expenses
Variable cost of goods sold
Inventory, January 1 0 26100
Variable manufacturing 339300 287100
costs
Cost of goods available 339300 313200
for sale
Inventory, December 31 26100 0
Variable cost of goods 313200 313200
sold
Variable selling expenses 18000 18000
Total variable expenses 331200 331200
Contribution ...

Solution Summary

This explains the Absorption and variable costing by practical example

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