@ YC SSS v x 5 Cal State X PortalGu X <_> Syllabus x Downloz x| Mail - M x 4 My Hom X Cengage X Course | X Course l X + X A v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false TP AIM CHAPTER 21 7 eBook Show Me How Income Statements under Absorption Costing and Variable Costing ? 1. EX.21.01.ALGO Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during 2. EX.21.02.ALGO X the first month. The following data summarize the results for July: Sales (18,000 units) $2,700,000 3. EX.21.02.BLANKSHEET.AL... Production costs (23,000 units): 4. EX.21.04.ALGO Direct materials $1,276,500 Direct labor 611,800 5. EX.21.05.ALGO Variable factory overhead 305,900 6. EX.21.06.ALGO Fixed factory overhead 204,700 2,398,900 7. EX.21.11.ALGO Selling and administrative expenses: Variable selling and administrative expenses $371,800 8. EX.21.12.ALGO Fixed selling and administrative expenses 143,900 515,700 9. EX.21.13.ALGO If required, round interim per-unit calculations to the nearest cent. 10. EX.21.16.ALGO a. Prepare an income statement according to the absorption costing concept. 11. PR.21.01B.ALGO Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 2,700,000 Cost of goods sold V 1,877,400 Progress: 2/11 items Check My Work 2 more Check My Work uses remaining. Previous Next Type here to search O 9:35 PM 70"F Clear ~ g 10/4/2022@ YC SSS v x 5 Cal State X PortalGu X Syllabus x [ Downloz x | Mail - M x 2 My Hom x Cengage X Course | X Course l X + X A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false To AIM CHAPTER 21 7 eBook Show Me How Gross profit 822,600 ? 1. EX.21.01.ALGO Selling and administrative expenses 515,700 2. EX.21.02.ALGO X Operating income 306,900 3. EX.21.02.BLANKSHEET.AL... Feedback 4. EX.21.04.ALGO Check My Work 5. EX.21.05.ALGO a. Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead. 6. EX.21.06.ALGO 7. EX.21.11.ALGO b. Prepare an income statement according to the variable costing concept. 8. EX.21.12.ALGO Gallatin County Motors Inc. Variable Costing Income Statement 9. EX.21.13.ALGO For the Month Ended July 31 Sales 2,700,000 10. EX.21.16.ALGO Variable cost of goods sold Manufacturing margin 11. PR.21.01B.ALGO Variable selling and administrative expenses Contribution margin Fixed costs: Fixed factory overhead costs Progress: 2/11 items Check My Work 2 more Check My Work uses remaining. Previous Next Type here to search O 2 9:35 PM 70"F Clear ~ g 10/4/2022@ YC SSS v x 5 Cal State X PortalGu X Syllabus x [ Downloz x | Mail - M x 2 My Hom x Cengage X Course | X Course l X + X A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false To AIM CHAPTER 21 eBook Show Me How ? 1. EX.21.01.ALGO b. Prepare an income statement according to the variable costing concept. Gallatin County Motors Inc. 2. EX.21.02.ALGO X Variable Costing Income Statement For the Month Ended July 31 3. EX.21.02.BLANKSHEET.AL... Sales 2,700,000 Variable cost of goods sold 4. EX.21.04.ALGO Manufacturing margin 5. EX.21.05.ALGO Variable selling and administrative expenses 6. EX.21.06.ALGO Contribution margin Fixed costs: 7. EX.21.11.ALGO Fixed factory overhead costs 8. EX.21.12.ALGO Fixed selling and administrative expenses Total fixed costs 9. EX.21.13.ALGO Operating income 10. EX.21.16.ALGO c. What is the reason for the difference in the amount of operating income reported in (a) and (b)? 11. PR.21.01B.ALGO Under the absorption costing method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under variable costing Y, all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the variable costing _ income statement will have a higher operating income. Check My Work Progress: 2/11 items 2 more Check My Work uses remaining. Previous Next 9:35 PM Type here to search O gi 70'F Clear ~ 918 10/4/2022