Absorption costing income statement

On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept:

Sales (340,000 units)				$5,430,000
Variable cost of goods sold:
Variable cost of goods manufactured (400,000 units $12 per unit)		$4,800,000
Less ending inventory (60,000 units $12 per unit)		720,000
Variable cost of goods sold				4,080,000
Manufacturing margin				$1,350,000
Variable selling and administrative expenses				60,000
Contribution margin				$1,290,000
Fixed costs:
Fixed manufacturing costs		$120,000
Fixed selling and administrative expenses		56,000		176,000
Income from operations				$1,114,000

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

a. Prepare an absorption costing income statement. Round your answers to the nearest dollar.

Tudor Manufacturing Co.
Income Statement-Absorption Costing
For the Month Ended June 30
Cost of goods manufacturedEnding inventoryGross profitSalesSelling and administrative expenses				$fill in the blank 3
Cost of goods sold:
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expenses		$fill in the blank 5
Less cost of goods soldLess ending inventoryLess gross profitLess salesLess selling and administrative expenses		fill in the blank 7
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expenses				fill in the blank 9
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expenses				$fill in the blank 11
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expenses				fill in the blank 13
Income from operations				$fill in the blank 14

b. Reconcile the variable costing income from operations of $1,114,000 with the absorption costing income from operations determined in (a). Round your answers to the nearest dollar.

Reconciliation of Variable and Absorption Costing Income
Variable costing income from operations	$fill in the blank 15
Absorption costing income from operations	fill in the blank 16
Difference	$fill in the blank 17