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 (100,000 units) $1,000,000 Variable cost of goods sold: Variable cost of goods manufactured (120,000 units x $7 per unit) $840,000 Less ending inventory (20,000 units x $7 per unit) 140,000 Variable cost of goods sold 700,000 Manufacturing margin $300,000