Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 33,900 hats, of which 32,200 were sold. Operating data for the month are summarized as follows: Sales $296,240 Manufacturing costs: Direct materials $176,280 Direct labor 47,460 Variable manufacturing cost 20,340 Fixed manufacturing cost 20,340 264,420 Selling and administrative expenses: Variable $16,100 Fixced 11.750 27,850 During August. Head Gear Inc. manufactured 30,500 hats and sold 32.200 hats. Operating data for August are summanized as follows Sales $296.240 Manufacturing costs: Direct materials s158.600 Direct labor 42.700 Variable manufacturing cost 18.300 20,340 239,940 Foced manufacturing cost

Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (23,200 x $81) $1,879,200   Manufacturing costs (23,200 units):   Direct materials 1,127,520   Direct labor 266,800   Variable factory overhead 125,280   Fixed factory overhead 148,480   Fixed selling and administrative expenses 40,400   Variable selling and administrative expenses 48,800   The company is evaluating a proposal to manufacture 25,600 units instead of 23,200 units, thus creating an ending inventory of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are manufactured in the absorption costing format. If an amount box does not…

Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (17,000 units)   $2,210,000   Production costs (22,000 units):     Direct materials $1,058,200     Direct labor 508,200     Variable factory overhead 253,000     Fixed factory overhead 169,400   1,988,800   Selling and administrative expenses:     Variable selling and administrative expenses $308,300     Fixed selling and administrative expenses 119,300   427,600   If required, round interim per-unit calculations to the nearest cent. a.  Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31   $fill in the blank 72b9f3f8dfebff0_2   fill in the blank…

Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (15,000 units)   $2,100,000   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. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31   $       $       $ b.  Prepare an income statement…