Beauty Royale Inc. sells liquid soap for $$30$ a bottle. In August, the company produced $25,000$ bottles of

soap, while the soap sold was $23,000$ bottles. The company plans to produce $30,000$ bottles. There is no

inventory balance on August $1.$ Cost information in August is:

Required:

Prepare income statement using absorption costing.

Prepare income statement using variable costing.

Reconcile the difference for both method