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On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 4,700 units and sold 4,000 units. The following income statement was

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On December 31, the end of the first year of operations, Frankenreiter Inc., manufactured 4,700 units and sold 4,000 units. The following income statement was prepared, based on the variable costing concept Frankenreiter Inc Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales $1,680,000 Variable cost of goods sold: Variable cost of goods manufactured 949,400 (141,400) Inventory, December 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: 808,000 $872,000 200,000 $672,000 Fixed manufacturing costs $432,400 Fixed selling and administrative expenses 136,000 568,400 Total fixed costs Income from operations Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept Variable costing Absorption costing 103,600 Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the frst month. The following data summarize the results for August 9,500,000.00 1Sales (38,000 units) 2Production costs (44,500 units) 3,560,000.00 002,500.00 1,112,500.00 Direct materials 4Direct labor Verlable factory overhead Fixed factory overhead 67,500.007342,500.00 7 Selling and administrative expenses a. Prepare an income statement according to the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (@) will automatically appear if it is required. Enter all amounts as positive numbers Shawnee Motors Inc. Absorption Costing Income Statement (Label) Score: 6/45 1 Sales statement according b. Prepare an income answer choices for text entries. Be numbers. to the variable costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the sure to complete the statement heading. A colon () will automatically appear i it is required. Enter all amounts as positive Question not attempted. Shawnee Motors Inc Variable Costing Income Statement Label) Score: 0/87

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