Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales 1.380,000 194,100 Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin 1,340,075X 194,100 39,925 x Fixed costs: Fixed factory overhead Fixed selling and administrative expenses Total fixed costs 75.2000 Income from operations 75,200 X Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs Learning Objective Check My Work Previous Next Sales 44 X Cost of goods sold 27.78 X Gross profit Selling and administrative expenses Income from operations Feedback Check My W a. Under absorption costing, the cost of goods manufactured includes direct materials de labor and adory overhead costs Both fixed and vanable factory costs are included as part of factory overhead Leaming Objective 1 b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales 1.300.000 Variable cost of goods sold 194 100 Manufacturing margin 1.340.075 X Marble in and ministrativa Previous Next > Check My Work Lic w eBook Show Me How Calculator Print hem Income Statements under Absorption and Variable Costing 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 (11,500 units) $1,380,000 Production costs (15,000 units): Direct materials $666,000 Direct labor 319,500 Variable factory overhead 160,500 Fixed factory overhead 106,500 1,252,500 Selling and administrative expenses: Variable selling and administrative expenses $194,100 Fixed selling and administrative expenses 75,200 269,300 If required, round interim per unit calculations to the hearest cent. a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales 4.4 X Cost of goods sold 27.78 X Gross profit