ANSWER FOR A RATING - CORRECTLY PLEASE ACCOUNTING

Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (198,000 units) during the first month, creating an ending inventory of 17,000 units. During February, the company produced 181,000 units during the month but sold 198,000 units at $540 per unit. The February manufacturing costs and selling and administrative expenses were as follows:

	Number of Units		Unit Cost		Total Cost
Manufacturing costs in February 1 beginning inventory:
Variable	17,000		$270.00		$4,590,000
Fixed	17,000		24.00		408,000
Total			$294.00		$4,998,000
Manufacturing costs in February:
Variable	181,000		$270.00		$48,870,000
Fixed	181,000		27.70		5,013,700
Total			$297.70		$53,883,700
Selling and administrative expenses in February:
Variable	198,000		18.50		$3,663,000
Fixed	198,000		5.00		990,000
Total			23.50		$4,653,000

a. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 \begin{tabular}{l} \hline Sales \\ Cost of goods sold: \\ Beginning inventory \\ Costal of goods manufactured goods sold \\ Gross profit \\ Selling and administrative expenses \end{tabular} b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28