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 (12,000 units) | $1,200,000 | ||||
Production costs (15,000 units): | |||||
Direct materials | $555,000 | ||||
Direct labor | 267,000 | ||||
Variable factory overhead | 133,500 | ||||
Fixed factory overhead | 88,500 | 1,044,000 | |||
Selling and administrative expenses: | |||||
Variable selling and administrative expenses | $161,800 | ||||
Fixed selling and administrative expenses | 62,600 | 224,400 |
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 | $ |
Cost of goods sold | |
Gross profit | $ |
Selling and administrative expenses | |
Income from operations | $ |
b. Prepare an income statement according to the variable costing concept.
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 | $ |
Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and...
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 (8,000 units) $1,200,000 Production costs (10,000 units): Direct materials $555,000 Direct labor 266,000 Variable factory overhead 133,000 Fixed factory overhead 89,000 1,043,000 Selling and administrative expenses: Variable selling and administrative expenses $161,700 Fixed selling and administrative expenses 62,600 224,300 If required, round interim per-unit calculations to...
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 (14,500 units) Production costs (19,000 units): $2,175,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead $1,054,500 505,400 252,700 169,100 1,981,700 Selling and administrative expenses Variable selling and administrative expenses $307,200 Fixed selling and administrative expenses 118,900 426,100 If required, round interim per-unit calculations to...
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: $1,280,000 Sales (8,000 units) Production costs (10,000 units): Direct materials $592,000 Direct labor 284,000 142,000 Variable factory overhead Fixed factory overhead 95,000 1,113,000 Selling and administrative expenses: Variable selling and administrative expenses Fixed selling and administrative expenses $172,500 66,800 239,300...
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: $1,800,000 Sales (12,000 units) Production costs (15,000 units): Direct materials $832,500 Direct labor 399,000 Variable factory overhead 199,500 Fixed factory overhead 133,500 1,564,500 Selling and administrative expenses: Variable selling and administrative expenses $242,500 Fixed selling and administrative expenses 93,900 336,400...
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 (16,500 units) $1,485,000 Production costs (21,000 units): Direct materials $699,300 Direct labor 336,000 Variable factory overhead 168,000 Fixed factory overhead 111,300 1,314,600 Selling and administrative expenses: Variable selling and administrative expenses $203,800 Fixed selling and administrative expenses 78,900 282,700...
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 (8,000 units) $800,000 Production costs (10,000 units): Direct materials $370,000 Direct labor 178,000 Variable factory overhead 89,000 Fixed factory overhead 59,000 696,000 Selling and administrative expenses: Variable selling and administrative expenses $107,900 Fixed selling and administrative expenses 41,800 149,700...
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 (16,500 units) $2,145,000 Production costs (21,000 units): Direct materials $1,010,100 Direct labor 485,100 Variable factory overhead 241,500 Fixed factory overhead 161,700 1,898,400 Selling and administrative expenses: Variable selling and administrative expenses $294,300 Fixed selling and administrative expenses 113,900 408,200...
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 (15,000 units) $2,250,000 Production costs (19,000 units): Direct materials $1,054,500 Direct labor 505,400 Variable factory overhead 252,700 Fixed factory overhead 169,100 1,981,700 Selling and administrative expenses: Variable selling and administrative expenses $307,200 Fixed selling and administrative expenses 118,900 426,100...
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 (10,500 units) $1,365,000 Production costs (14,000 units): Direct materials $673,400 Direct labor 323,400 Variable factory overhead 161,000 Fixed factory overhead 107,800 1,265,600 Selling and administrative expenses: Variable selling and administrative expenses $196,200 Fixed selling and administrative expenses 75,900 272,100...
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 (14,000 units) $1,540,000 Production costs (18,000 units): Direct materials $732,600 Direct labor 351,000 Variable factory overhead 176,400 Fixed factory overhead 117,000 1,377,000 Selling and administrative expenses: Variable selling and administrative expenses $213,400 Fixed selling and administrative expenses 82,600 296,000...