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 (10,000 units)				$1,300,000
Production costs (13,000 units):
Direct materials		$625,300
Direct labor		300,300
Variable factory overhead		149,500
Fixed factory overhead		100,100		1,175,200
Selling and administrative expenses:
Variable selling and administrative expenses		$182,200
Fixed selling and administrative expenses		70,500		252,700

b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 $ Fixed costs: $