interior designers often use the deluxe carpet products of lux mills inc 544754

Traditional and Variable Costing Income Statements

P 7. Interior designers often use the deluxe carpet products of Lux Mills, Inc. The Maricopa blend is the company’s top product line. In March, Lux produced and sold 174,900 square yards of Maricopa blend. Factory operating data for the month included variable cost of goods sold of $2,623,500 and fixed overhead of $346,875. Other expenses were variable selling expenses, $166,155; fixed selling expenses, $148,665; and fixed general and administrative expenses, $231,500. Total sales revenue equaled $3,935,250. All production took place in March, and there was no work in process at month end. Goods are usually shipped when completed.

Required

1. Prepare the March income statement for Lux Mills, Inc., using the traditional reporting format.

2. Prepare the March income statement for Lux Mills, Inc., using the variable costing format.