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 (9,000 units) $1,260,000 Production costs (12,000 units): Direct materials $621,600 Direct labor 298,800 Variable factory overhead 148,800 Fixed factory overhead 99,600 1,168,800 Selling and administrative expenses: Variable selling and administrative expenses $181,200 Fixed selling and administrative expenses 70,100 251.300 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
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 (9,000 units) $1,260,000 Production costs (12,000 units): Direct materials $621,600 Direct labor 298,800 Variable factory overhead 148,800 Fixed factory overhead 99,600 1,168,800 Selling and administrative expenses: Variable selling and administrative expenses $181,200 Fixed selling and administrative expenses 70,100 251.300 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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