Sibrel Inc., a manufacturing company, has provided the following financial data for September:
Sales……………………………………………$590,000
Variable production expenses…………$106,000
Variable selling expense…………………$18,000
Variable administrative expense………$78,000
Fixed production expense……………….$145,000
Fixed selling expense…………………….$72,000
Fixed administrative expense………….132,000
The company had no beginning or ending inventories.
Required:
a) Prepare an income statement in good form for September using the traditional approach.
b) Prepare an income statement in good form for September using the contribution approach.