Question
Hello I need need help walking thru this problem can I have some assistance Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles
Hello I need need help walking thru this problem can I have some assistance
Income Statements underAbsorptionandVariable Costing
Shawnee Motors Inc. assembles and sells MP3 players. 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:
Sales (19,500 units) $2,535,000
Production costs (25,000 units):
Direct materials$1,202,500
Direct labor 577,500Variable factory
overhead 287,500
Fixed factory overhead 192,500 2,260,000
Selling and administrative expenses:
Variable selling and administrative expenses $350,300
Fixed selling and administrative expenses 135,600 485,900
If required, round interim per-unit calculations to the nearest cent.
a. income statement according to the absorption costing concept.
Shawnee Motors Inc.Absorption Costing Income Statement For the Month Ended August 31
Sales?
Cost of goods sold?
Gross profit?
Selling and administrative expenses?
Income from operations?
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a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead.
Learning Objective 1.
b. income statement according to the variable costing concept.
Shawnee Motors Inc.Variable Costing Income Statement For the Month Ended August 31
Sales?
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?
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