Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and

Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and

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 (12,500 units) $1,875,000 Production costs (16,000 units): Direct materials $888,000 Direct labor 425,600 Variable factory overhead 212,800 Fixed factory overhead 142,400 1,668,800 Selling and administrative expenses: Variable selling and administrative expenses $258,700 Fixed selling and administrative expenses 100,100 358,800 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 $ Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Sales $ Variable cost of goods sold Manufacturing margin $ Variable selling and administrative expenses Contribution margin $ Fixed costs: Fixed factory overhead $ Fixed selling and administrative expenses Total fixed costs Income from operations