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    Absorption and variable costing

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    Absorption and variable costing income statements for two months and analysis

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    © BrainMass Inc. brainmass.com March 4, 2021, 6:26 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/absorption-and-variable-costing-44582

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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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