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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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