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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 2E: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on...
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