August:

Sales $(9,000$ units$)$

Production costs $(12,000$ units$)$:

Direct materials

Direct labor

Variable factory overhead

Fixed factory overhead

Selling and administrative expenses:

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$1,170,000$

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

$$1,170,000$

Cost of goods sold

Gross profit

Selling and administrative expenses

Income from operations