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Income Statements under Absorption Costing and Variable Costing

Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March $1$ and operated at $100\%$ of capacity during the first month. The following data summarize the results for March:

Line Item Description Amount Amount Sales $(19,000$ units$)$$$2,660,000$ Production costs $(25,000$ units$)$:$$Direct materials $$1,295,000$Direct labor $622,500$Variable factory overhead $310,000$Fixed factory overhead $207,5002,435,000$ Selling and administrative expenses:$$Variable selling and administrative expenses $$377,400$Fixed selling and administrative expenses $146,100523,500$

If required, round interim per$-$unit calculations to the nearest cent.

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a$.$Prepare an income statement according to the absorption costing concept.

Crazy Mountain Sports Inc.

Absorption Costing Income Statement

For the Month Ended March $31$ Line item description Amount