5 EX 20-3. Income statements under absorption costing and variable costing Obj. Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports loga. The company be gan operations on May 1 and operated at 1D0% of capacity (270,00 units) dur- ing the first month, creating an ending inventory of 24,ooo units. During June, the company produced 246,000 garments during the month but sold 270,000 units at $3oo per unit. The June manufacturing costs and selling and adminis- tra tive expenses were as follows Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory ariable.. Fixed 24,000 $150.00 24,000 32.80 $182.80 5 3,600,000 787,200 4,387,200 Manufacturing costs in June: 246,000 $150.00 36.00 186.00 36,900,000 8,856,000 45,756,000 Fixed 246,000 Total.. Selling and administrative expenses in June Variable 270,000 972,000 8.60$13,122,000 3.60 4 Prepare an income statement according to the absorption costing concept for June. Prepare an income statement according to the variable costing concept for June Answer J Check Figure: Income from operations, $18,522,000 What is the reason for the difference in the amount of income from operations reported in (A) and (B)