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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
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 (11,500 units) | $1,840,000 | ||||
Production costs (15,000 units): | |||||
Direct materials | $888,000 | ||||
Direct labor | 426,000 | ||||
Variable factory overhead | 213,000 | ||||
Fixed factory overhead | 142,500 | 1,669,500 | |||
Selling and administrative expenses: | |||||
Variable selling and administrative expenses | $258,800 | ||||
Fixed selling and administrative expenses | 100,200 | 359,000 |
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 | $fill in the blank c7919900ffda034_2 |
Cost of goods sold | fill in the blank c7919900ffda034_4 |
Gross profit | $fill in the blank c7919900ffda034_6 |
Selling and administrative expenses | fill in the blank c7919900ffda034_8 |
Income from operations | $fill in the blank c7919900ffda034_10 |
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