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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.

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 (16,500 units) $2,145,000
Production costs (21,000 units):
Direct materials $1,010,100
Direct labor 485,100
Variable factory overhead 241,500
Fixed factory overhead 161,700 1,898,400
Selling and administrative expenses:
Variable selling and administrative expenses $294,300
Fixed selling and administrative expenses 113,900 408,200

If required, round interim per-unit calculations to the nearest cent.

a. Prepare an income statement according to the absorption costing concept.

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