Income Statements under 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 (14,500 units) ...............................................................................$1,305,000

Production costs (19,000 units)

Direct materials....................................................$632,700

Direct labor...........................................................$304,000

Variable factory overhead.....................................$152,000

Fixed factory overhead.........................................$100,700 ($1,189,400)

Selling and administrative expenses

Variable selling and administrative expenses.......$184,400

Fixed selling and administrative expenses............$71,400 ($255,800)

If required, round to the interim per-unit calculations to the absorption costing concept

a.Prepare an income statemen according to the absorption costing concept.

Shawnee Motors Inc.

Absorption Costing Income Statement

For the Month ending Augst 31

Select one from drop down:

Income Statements under 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 (14,500 units) ...............................................................................$1,305,000

Production costs (19,000 units)

Direct materials....................................................$632,700

Direct labor...........................................................$304,000

Variable factory overhead.....................................$152,000

Fixed factory overhead.........................................$100,700 ($1,189,400)

Selling and administrative expenses

Variable selling and administrative expenses.......$184,400

Fixed selling and administrative expenses............$71,400 ($255,800)

If required, round to the interim per-unit calculations to the absorption costing concept

a.Prepare an income statemen according to the absorption costing concept.

Shawnee Motors Inc.

Absorption Costing Income Statement

For the Month ending Augst 31

Select one from drop down:

A.

Select one below

Enter Amount

a

Cost of goods sold

$

b

Direct Labor

c

Direct Materials

d

Fixed factory overhead

e

Sales

a

Cost of goods sold

$

b

Gross profit

c

Sales

d

Selling & adminstrative expenses

e

Variable factory overhead

a

Direct Labor

$

b

Direct materials

c

Gross profit

d

Fixed factory overhead

e

Sales

a

Cost of goods sold

b

Fixed factory overhead

c

Sales

d

Selling and administrative expenses

e

Variable factgory overhead

a

Income from Operations

$

b

Loss from operations

B.

B.

Prepare an income statement according to the variable costing concept.

a

Contribution margin

b

Fixed selling andadministrative expenses

c

Manufacturing margin

d

Sales

e

Variable selling and administrative expenses

Fixed Costs

a

Contribution Margin

$

b

Fixed factory overhead

c

Manufacturing margin

$

d

Sales

Variable cost of goods sold