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 (12,500 units) Production costs (16,000 units): $1,625,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $769,600 369,600 184,000 123,200 1,446,400 Selling and administrative expenses: Variable selling and administrative expenses $224,200 Fixed selling and administrative expenses 86,800 311,000 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