Question
Sales (10,000 units) Production costs (13,000 units): Direct materials Direct labor Variable factory overhead $1,500,000 $721,500 345,800 172,900 115,700 1,355,900 Fixed factory overhead Selling
Sales (10,000 units) Production costs (13,000 units): Direct materials Direct labor Variable factory overhead $1,500,000 $721,500 345,800 172,900 115,700 1,355,900 Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses $210,200 Fixed selling and administrative expenses 81,400 291,600 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales Cost of goods sold 1,500,000 1,043,000 Gross profit Selling and administrative expenses 291,600 ?
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