Question: Please I need help. I understand the calculation but for some reason it is not adding correctly. Income Statements under Absorption and Variable Costing Shawnee
Please I need help. I understand the calculation but for some reason it is not adding correctly.



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: $1,190,000 Sales (8,500 units) Production costs (11,000 units): Direct materials Direct labor $569,800 273,900 136,400 91,300 1,071,400 Variable factory overhead Fixed factory overhead Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $166,100 64,300 230,400 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 $ 1,190,000 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Feedback b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Feedback b. Prepare an income statement according to the variable costing a Shawnee Motors Inc. Variable Costing Income Statement For the Month Ended August 31 Contribution margin Fixed selling and administrative expenses Manufacturing margin Sales Variable selling and administrative expenses
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
