Just the answers please without explanation and short answer for C. Thanks EX 20

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Just the answers please without explanation and short answer for C.
Thanks

EX 20-2 Income statements under absorption costing and variable costing Shawnee Motors Inc. assembles and sells snowmobile engines. The company be operations on August 1 and operated at 100% of capacity during the first month. The followin data summarize the results for August: Obj. 1 m O 600,000 Sales (2,000 units) Production costs (2,400 units): W $300,000 115,200 43,200 21,600 Direct materials Variable factory overhead Fixed factory overhead 480,000 Selling and administrative expenses: Variable selling and administrative expenses.... Fixed selling and administrative expenses....... 50,000 22,000 72,000 A. Prepare an income statement according to the absorption costing concept B. Prepare an income statement according to the variable costing concept. CWhat is the reason for the difference in the amount of income from operatic s reported in (A) and (B)?

Explanation / Answer

A) unit product cost under Absorption Costing $ Direct materials (300000/2400) 125 Direct labor (115200/2400) 48 Variable factory overhead (43200/2400) 18 fixed factory overhead (21600/2,400) 9 unit product cost under Absorption costing 200 Income statement under Absorption costing Sales 600,000 less cost of good sold (2000*200) 400000 Gross profit 200,000 less:Selling & adm expense 72,000 Net income 128,000 B) unit product cost under variable costing $ Direct materials (300000/2400) 125 Direct labor (115200/2400) 48 Variable factory overhead (43200/2400) 18 unit product cost 191 income statement under Variable costing Sales 600,000 less Variable expense variable cost of goods sold (2000*191) 382000 Variable selling & administrative expense 50,000 Contribution margin 168,000 Fixed expense fixed manufacturing overhead 21,600 fixed selling & adm expense 22,000 43,600 net income 124,400 c) the difference is due to fixed overhead deferred in ending inventory under Absorption costing. which is 400*9 = $3,600

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