Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:
|Sales (16,500 units)||$2,145,000|
|Production costs (21,000 units):|
|Variable factory overhead||241,500|
|Fixed factory overhead||161,700||1,898,400|
|Selling and administrative expenses:|
|Variable selling and administrative expenses||$294,300|
|Fixed selling and administrative expenses||113,900||408,200|
If required, round interim per-unit calculations to the nearest cent.
a. Prepare an income statement according to the absorption costing concept.
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