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 following data summarize the results for August: Sales (8,000 units) Production costs (10,000 units): Direct materials Direct labor Variable factory overhead $880,000 $407,000 195,000 98,000 65,000 765,000 Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $118,600 Fixed selling and administrative expenses 45,900 164,500 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 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Check My Work 880,000 994,500 X