#9 chp 21

On July 31 , the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept: Sales (13,000 units) $650,000 Cost of goods sold: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $48,000 and the variable selling and administrative expenses were $34,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. b. Reconcile the absorption costing income from operations of $149,250 with the variable costing income from operations determined in (a)