NOTE You can see where answers are needed where it says fillintheblank Thank you so much 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 (17,000 units) $1,700,000 Production costs (22,000 units) Direct materials $814,000 Direct labor 391,600 Variable factory overhead 195,800 Fixed factory overhead 129,800 1,531,200 Selling and administrative expenses Variable selling and administrative expenses $237,300 Fixed selling and administrative expenses 91,900 329,200 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 b324fefd6f93ffc 2 Cost of goods sold fill in the blank b324fefd6f93ffc 4 Gross profit $fill in the blank b324fefd6f93ffc 6 Selling and administrative expenses fill in the blank b324fefd6f93ffc 8 Income from operations $fill in the blank b324fefd6f93ffc 10 Feedback a Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs Both fixed and variable factory costs are included as part of factory overhead Learning Objective 1 b Prepare an income statement according to the variable costing concept Shawnee Motors Inc Variable Costing Income Statement For the Month Ended August 31 Sales $fill in the blank 6b0724052001fd9 2 Variable cost of goods sold fill in the blank 6b0724052001fd9 4 Manufacturing margin $fill in the blank 6b0724052001fd9 6 Variable selling and administrative expenses fill in the blank 6b0724052001fd9 8 Contribution margin $fill in the blank 6b0724052001fd9 10 Fixed costs Fixed factory overhead $fill in the blank 6b0724052001fd9 12 Fixed selling and administrative expenses fill in the blank 6b0724052001fd9 14 Total fixed costs fill in the blank 6b0724052001fd9 16 Income from operations $fill in the blank 6b0724052001fd9 18

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NOTE: You can see where answers are needed where it says fillintheblank Thank you so much! Income Statements under Absorption and Variable Costing Shawnee Motors

NOTE: You can see where answers are needed where it says "fillintheblank" Thank you so much!

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 (17,000 units)		$1,700,000
Production costs (22,000 units):
Direct materials	$814,000
Direct labor	391,600
Variable factory overhead	195,800
Fixed factory overhead	129,800	1,531,200
Selling and administrative expenses:
Variable selling and administrative expenses	$237,300
Fixed selling and administrative expenses	91,900	329,200

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 b324fefd6f93ffc_2
Cost of goods sold	fill in the blank b324fefd6f93ffc_4
Gross profit	$fill in the blank b324fefd6f93ffc_6
Selling and administrative expenses	fill in the blank b324fefd6f93ffc_8
Income from operations	$fill in the blank b324fefd6f93ffc_10

Feedback

a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead.

Learning Objective 1.

b. Prepare an income statement according to the variable costing concept.

Shawnee Motors Inc.
Variable Costing Income Statement
For the Month Ended August 31
Sales		$fill in the blank 6b0724052001fd9_2
Variable cost of goods sold		fill in the blank 6b0724052001fd9_4
Manufacturing margin		$fill in the blank 6b0724052001fd9_6
Variable selling and administrative expenses		fill in the blank 6b0724052001fd9_8
Contribution margin		$fill in the blank 6b0724052001fd9_10
Fixed costs:
Fixed factory overhead	$fill in the blank 6b0724052001fd9_12
Fixed selling and administrative expenses	fill in the blank 6b0724052001fd9_14
Total fixed costs		fill in the blank 6b0724052001fd9_16
Income from operations		$fill in the blank 6b0724052001fd9_18