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Whirlpool Corporation had the following abbreviated income statement for a recent year wrfm12h_ch20_ex20-9a.gif Assume that there were $4024 million fixed manufacturing costs and $930 million

Whirlpool Corporation had the following abbreviated income statement for a recent year:

wrfm12h_ch20_ex20-9a.gif

Assume that there were $4,024 million fixed manufacturing costs and $930 million fixed selling, administrative, and other costs for the year.

The finished goods inventories at the beginning and end of the year from the balance sheet were as follows:

wrfm12h_ch20_ex20-9b.gif

Assume that 30% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period.

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Prepare an income statement according to the variable costing concept for Whirlpool Corporation for the recent year. Round to nearest million.

Whirlpool Corporation

Variable Costing Income Statement

(in millions)

Sales

     

$

Variable cost of goods sold:

       

Beginning inventory

 

$

   

Variable cost of goods manufactured

 
 
   

Less: Ending inventory

 
 
   

Variable cost of goods sold

     
 

Manufacturing margin

     

$

Variable selling and administrative expenses

     
 

Contribution margin

     

$

Fixed costs:

       

Fixed manufacturing costs

 

$

   

Fixed selling and administrative expenses

 
 
 
 

Income from operations

     

$

Jun 23 2020 View more View Less

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