Income Statements under Absorption and Variable 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 (16,000 units) $1,600,000 Production costs (21,000 units): Direct materials $777,000 Direct labor 373,800 Variable factory overhead 186,900 Fixed factory overhead 123,900 1,461,600 Selling and administrative expenses: Variable selling and administrative expenses $226,500 Fixed selling and administrative expenses 87,700 314,200 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept.