eBook ** Show Me How Calculator Income statements under absorption costing and variable costing Instructions Labels and Amount Descriptions Instructions Shawnee Motors Inc, assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August $9,500,000.00 4,000 units $4,400,000.00 Sales (38,000 units) 2 Production costs (44,000 units): 5 Direct materials Direct labor Variable factory overhead Fixed factory overhead 1,760,000.00 1,100,000.00 660,000.00 7,920,000.00 eBook Show Me How Calculator 59,500,000.00 1 Sales (58,000 units) 2 Production costs (44,000 5 Direct materials Direct labor $4,400,000.00 1,760,000.00 1,100,000.00 660,000.00 7,920,000.00 Variable factory overhead Fixed factory overhead 7 Selling and administrative expenses: 3 Variable selling and administrative expenses Fixed selling and administrative expenses $1,170,000.00 200,000.00 5 8 concept 8 S 8 Required: a. Prepare an income statement ding to the absorptio b. Prepare an income statement acc ording to the variable c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? *Refer to the lists of Labels and Amount of the answer choices for text entries. Be sure to complete the statement heading A colon () will amounts as positive numbers. S . SS 8 O BE 4/26/2020 Absorption Costing Income Statement d cells have feedback a. Prepare an income statement according to the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. Enter all amounts as positive numbers Score: 30/45 Shawnee Motors Inc. Absorption Costing Income Statement Cost of goods sold 1 Sales $9,500,000.00 6,992,000.00 2 Cost of goods sold $2,508,000.00 3 Gross profit 4 Selling and administrative expenses 323,232.00 5 Income from operations $121.313.00 Check My Work . (Previous Next > b. Prepare an income statement according to the variable costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. Enter all amounts as positive numbers Shawnee Motors Inc. e: 65/87 Variable Costing Income Statement (Label) 1 Sales $9,500,000.00 12.00 Variable cost of goods sold 3 Manufacturing margin $243,242,42400 1,170,000.00 4 Variable selling and administrative expenses 5 Contribution margin $235,423.00 6 Fixed costs Fixed factory overhead costs Fixed selling and administrative expenses $660,000.00 200,000.00 Total fixed costs 8.775.00 10 Income from operations $8,967,868.00 Check My Work Previous Next