at 100% of capacity during the first month. The following data summarize the results for July: Sales (19,500 units) $1,950,000 Production costs (25,000 units): Direct materials $925,000 Direct labor 445,000 Variable factory overhead 222,500 Fixed factory overhead 147,500 1,740,000 Selling and administrative expenses: Variable selling and administrative expenses $269,700 Fixed selling and administrative expenses 104,400 374,100 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31
at 100% of capacity during the first month. The following data summarize the results for July: Sales (19,500 units) $1,950,000 Production costs (25,000 units): Direct materials $925,000 Direct labor 445,000 Variable factory overhead 222,500 Fixed factory overhead 147,500 1,740,000 Selling and administrative expenses: Variable selling and administrative expenses $269,700 Fixed selling and administrative expenses 104,400 374,100 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please assist. The 2nd pic continues where first left off. Thank you.
Transcribed Image Text:Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated
at 100% of capacity during the first month. The following data summarize the results for July:
Sales (19,500 units)
$1,950,000
Production costs (25,000 units):
Direct materials
$925,000
Direct labor
445,000
Variable factory overhead
222,500
Fixed factory overhead
147,500
1,740,000
Selling and administrative expenses:
Variable selling and administrative expenses
$269,700
Fixed selling and administrative expenses
104,400
374,100
If required, round interim per-unit calculations to the nearest cent.
a. Prepare an income statement according to the absorption costing concept.
Gallatin County Motors Inc.
Absorption Costing Income Statement
For the Month Ended July 31
%24
Transcribed Image Text:b. Prepare an income statement according to the variable costing concept.
Gallatin County Motors Inc.
Variable Costing Income Statement
For the Month Ended July 31
Fixed costs:
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