Absorption Costing Income StatementOn 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$)$ $$1,100,000$Variable cost of goods sold: Variable cost of goods manufactured $(120,000$ units x $$8$ per unit$)$$$960,000$ Less ending inventory $(20,000$ units x $$8$ per unit$)160,000$ Variable cost of goods sold $800,000$Manufacturing margin $$300,000$Variable selling and administrative expenses $11,000$Contribution margin $$289,000$Fixed costs: Fixed manufacturing costs$$18,000$ Fixed selling and administrative expenses$19,00037,000$Income from operations $$252,000$Question Content Areaa. Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

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Income from operations

a$.$ Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. Tudor Manufacturing Co$.$

Income Statement$-$Absorption Costing

For the Month Ended June $30$

Cost of goods sold:

Income from operations

b$.$ Reconcile the variable costing income from operations of $$252,000$ with the absorption costing income from operations determined in $($a$).$

Reconciliation of Variable and Absorption Costing Income

Variable costing income from operations

Absorption costing income from operations

Difference

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