Encinas Company produces a product that requires 6 standard pounds per unit. The standard price is $1.75 per pound. The company produced 2,300 units that required 13,400 pounds, which were purchased at $2.00 per pound. The product also requires 3 standard hours per unit at a standard hourly rate of $21 per hour. The 2,300 units produced required 6,600 hours at an hourly rate of $20.50 per hour. In addition, the standard variable overhead cost per unit is $1.90 per hour and the actual variable factory overhead was $11,905. Finally, the standard fixed overhead cost per unit is $1.20 per hour at 7,100 hours, which is 100% of normal capacity. Prepare an income statement through gross profit for Encinas Company for the month ended July 31. Assume that Encinas sold 2,300 units at $270 per unit. If an amount box does not require an entry, leave it blank.

Encinas Company
Income Statement Through Gross Profit
For the Month Ended July 31
Sales $621,000
Cost of goods sold-at standard $
Gross profit-at standard $

Unfavorable Favorable
Variance adjustment to gross profit at standard:
Direct materials price
Direct materials quantity
Direct labor rate
Direct labor time
Factory overhead controllable
Factory overhead volume

Add net favorable variance from standard $
Gross profit-actual $