1. Prepare this company's income statement for its first month of operations under absorption costing.
2. Fill in the blanks:

Save 5 Exercise 19-6 Absorption costing income statement LO P2 42 oints Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold this left 110 bikes in ending inventory. The Income statement information under variable costing follows. eBook Sales (215 $1,725) Variable product cost (2155625) Variable selling and administrative expenses (215955) Contribution margin Fixed overhead cont Fixed selling and administrative expense Net income $570,875 134,375 11,825 224,675 48,750 35.000 90,925 Hint Print 1. Prepare this company's income statement for its first month of operations under absorption costing 2. Fill in the blanks: References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing KENI KAYAKING Absorption Costing Income Statement 5 370,875 Sales Les Cost of goods sold Variable product costs $ 134,375 HU Required 1 Required 2 Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement $ 370,875 Sales Less: Cost of goods sold Variable product costs Fixed overhead costs X $ 134,375 48,750 183,125 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses es Net income (loss) Net income under absorption costing is higher than net income under variable costing by: Fixed costs added to inventory Required Required 2 >