Income Statements underAbsorptionandVariable Costing

Beach Motors Inc. assembles and sells Dune Buggy engines. The company began operations on July 1, 2014, and operated at 100% of capacity during the first month. The following data summarize the results for July:

a. Prepare an income statement according to the absorption costing concept. Enter all amounts as positive numbers.

Beach Motors Inc.
Absorption Costing Income Statement
For the Month Ended July 31, 2014
	$
	$
	$

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Hint(s)

b. Prepare an income statement according to the variable costing concept. Enter all amounts as positive numbers.

Beach Motors Inc.
Variable Costing Income Statement
For the Month Ended July 31, 2014
	$
	$
	$
Fixed costs:
	$
	$

B part is more important