Bonic Cotton Inc. manufactures and sells high-quali y sporting goods equ pment under s highly recognizable Cool Cat logo. The company began operations on January 1, 2016 and operated at 100% of capacity 84,000 units dunng the rst month, creating an ending inventory of 8,000 units. During February, the company produced 76,600 garments during the month but sold 84,600 units at $92 per unit. The February manufacturing costs and selling and administrative expenses were as tolows: Number of Units Unit Cost Total Cost Manufacturing costs in February beginning inventory Variable Fixed Total February manufacturing costs: Variable 8,000 $50 $400,000 8,000 10 80,000 $60 $480,000 76,600 $50 S 3,830,000 Fixed Total Selling and administrative expenses: Variable Fixed Total 76,600 12 919,200 $62 $4,749,200 $ 1,340,000 330,000 $1,670,000 Required: A. Prepare an income statement according to the absorption costing concept for February. B. Prepare an income statement according to the variable costing concept for February." C. What is the reason for the difference in the amount of income from operations reported in (A) and (B)? C. What is the reason for the difference in the amount of income from operations reported in (A) and (B)? Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon ()wl automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Labels and Amount Descriptions Labels February 29, 2016 Fixed costs For the Month Ended February 29, 2016 Amount Descriptions Beginning inventory Contribution margin Contribution margin ratio Cost of goods manufactured Cost of goods sold Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Income from operations Loss from operations Manufacturing margin Planned contribution margin Beginning inventory Contribution margin Contribution margin ratio Cost of goods manufactured Cost of goods sold Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Income from operations Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Variable cost of goods sold Variable selling and administrative expenses Absorption Costing Income Statement Shaded cells have feedback A. Prepare an income statement according to the absorption costing concept for February. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) wiw automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign heading. A colon () wiW automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Question not attempted. Score: 0/66 Bionic Cotton Inc. Absorption Costing Income Statement Label) 2Cost of goods sold Points: 0/15 Feedback Check My Work Under absorption costing, the cost of goods manufactured includes direct materials, direct labor, and factory overhead costs. Both fixed and variable factory costs are included as part of factory overhead Variable Costing Income Statement Shaded cells have feedback B. Pre are an income statement acco in to the va able cos n concep for Februar efer to the stsLabels and Amount escrip on is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. or the exact wo din of the ans er choices ir teet entries. Be sureto complete te statement headin A colon ( :) wil' automatically appear Question not attempted. Score: 0/82 Bionic Cotton Inc Variable Costing Income Statement Label) (Label Points: 0/19 Feedback Chark Mw Wnrk