Free Preschool & Ki... - Free Coloring Page... eBook Show Me How Calculator Print Item Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 a results for August: Sales (9,500 units) Production costs (12,000 units): $1,235,000 Direct materials $577,200 Direct labor 277,200 138,000 92,400 1,084,800 Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $168,100 65,100 233,200 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales $1.235.000 Cost of goods sold 858,800 V Gross prolit 376,200 Check My Work All work saved. eBook Show Me How Calculator Print Item b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales 1,235,000 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead Fixed selling and administrative expenses Total fixed costs Income from operations Feedback Check My World b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs Leaming Objective Check My Work All work saved che pil che Che P/