Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials $851,000 Direct labor 409,400 Variable factory overhead 204,700 Fixed factory overhead 135,700 1,600,800 Selling and administrative expenses: Variable selling and administrative expenses $248,100 Fixed selling and administrative expenses 96,000 344,100 If required, round interim per-unit calculations to the nearest cent. *** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please? 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 $1750000 Cost of goods sold Gross profit $ Selling and administrative expenses 344100 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 $1750000 Variable cost of goods sold Manufacturing margin $ Variable selling and administrative expenses 248100 Contribution margin $ Fixed costs: Fixed factory overhead $ 135700 Fixed selling and administrative expenses 96000 Total fixed costs Income from operations $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales (17,500 units)		$1,750,000
Production costs (23,000 units):
Direct materials	$851,000
Direct labor	409,400
Variable factory overhead	204,700
Fixed factory overhead	135,700		1,600,800
Selling and administrative expenses:
Variable selling and administrative expenses	$248,100
Fixed selling and administrative expenses	96,000		344,100

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

*** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please?

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	$1750000
Cost of goods sold
Gross profit	$
Selling and administrative expenses	344100
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		$1750000
Variable cost of goods sold
Manufacturing margin		$
Variable selling and administrative expenses		248100
Contribution margin		$
Fixed costs:
Fixed factory overhead	$	135700
Fixed selling and administrative expenses		96000
Total fixed costs
Income from operations		$

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