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 (19,500 units) $2,340,000 Production costs (25,000 units): Direct materials $1,110,000 Direct labor 532,500 Variable factory overhead 267,500 Fixed factory overhead 177,500 2,087,500 Selling and administrative expenses: Variable selling and administrative expenses $323,600 Fixed selling and administrative expenses 125,300 448,900 If required, round interim per-unit calculations to the nearest cent. Question Content Area 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
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 (19,500 units) $2,340,000 Production costs (25,000 units): Direct materials $1,110,000 Direct labor 532,500 Variable factory overhead 267,500 Fixed factory overhead 177,500 2,087,500 Selling and administrative expenses: Variable selling and administrative expenses $323,600 Fixed selling and administrative expenses 125,300 448,900 If required, round interim per-unit calculations to the nearest cent. Question Content Area 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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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
(19,500 units) $2,340,000 Production costs (25,000 units): Direct materials $1,110,000 Direct labor
532,500 Variable factory overhead 267,500 Fixed factory overhead 177,500 2,087,500 Selling and
administrative expenses: Variable selling and administrative expenses $323,600 Fixed selling and
administrative expenses 125,300 448,900 If required, round interim per-unit calculations to the
nearest cent. Question Content Area 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
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