Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players....
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 (14,500 units)
$2,030,000
Production costs (19,000 units):
Direct materials
$984,200
Direct labor
473,100
Variable factory overhead
235,600
Fixed factory overhead
157,700
1,850,600
Selling and administrative expenses:
Variable selling and administrative expenses
$286,800
Fixed selling and administrative expenses
111,000
397,800
If required, round interim per-unit calculations to the nearest 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
$
Cost of goods sold
Gross profit
$
Selling and administrative expenses
Income from operations
$
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
