PLEASE RESPOND ASAP

8. Gallatin County Motors Inc, assembles, and sells snowmobile engines. The company began operations on July 1 and operated at 100% of

capacity during the first month. The following data summarize the results for julv:

Sales (4,000 units)

$2.600.000

Production costs (4,350 units):

Direct materials

$1.218.000

Direct labor

522,000

Variable factory overhead

87 000

Fixed factory overhead

130 500

1 957 500

Selling and administrative expenses:

Variable selling and administrative expenses

$60.000

Fixed selling and administrative expenses

25,000

85,000

Prepare an income statement according to the variable costing concept.

PART B

Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region

are as follows:

Northern Region unit sales

Southern Region unit sales

Total

Bath Scale Gym Scale

27,700

29,900

57.600

36.900

31.400

68.300

The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 1,200 and 2,300 units, respectively. The desired

finished goods inventory for March 31 for the Bath and Gym scale models is 900 and 2,500 units, respectively.

Prepare a production budget for the Gym scales for the month ended March 31.