Gallatin County Motors Inc. assembles and sells snowmobile engines. The company begar summarize the results for July: Sales (16,500 units) $1,980,000 Production costs (21,000 units): Direct materials $932,400 Direct labor 447,300 Variable factory overhead 224,700 Fixed factory overhead 149,100 1,753,500 Selling and administrative expenses: Variable selling and administrative expenses $271,800 Fixed selling and administrative expenses 105,200 377,000
Gallatin County Motors Inc. assembles and sells snowmobile engines. The company begar summarize the results for July: Sales (16,500 units) $1,980,000 Production costs (21,000 units): Direct materials $932,400 Direct labor 447,300 Variable factory overhead 224,700 Fixed factory overhead 149,100 1,753,500 Selling and administrative expenses: Variable selling and administrative expenses $271,800 Fixed selling and administrative expenses 105,200 377,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 (16,500 units) | $1,980,000 | |||
| Production costs (21,000 units): | ||||
| Direct materials | $932,400 | |||
| Direct labor | 447,300 | |||
| Variable factory |
224,700 | |||
| Fixed factory overhead | 149,100 | 1,753,500 | ||
| Selling and administrative expenses: | ||||
| Variable selling and administrative expenses | $271,800 | |||
| Fixed selling and administrative expenses | 105,200 | 377,000 |
Transcribed Image Text:Income Statements under Absorption Costing and Variable Costing
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 (16,500 units)
$1,980,000
Production costs (21,000 units):
Direct materials
$932,400
Direct labor
447,300
Variable factory overhead
224,700
Fixed factory overhead
149,100
1,753,500
Selling and administrative expenses:
Variable selling and administrative expenses
$271,800
Fixed selling and administrative expenses
105,200
377,000
If required, round interim per-unit calculations to the nearest cent.
Transcribed Image Text: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
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:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education