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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 2E: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on...
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