bsorption and variable costing income statements for two months and analysis Instructions During the first month of operations ended May 31, Big Sky Creations Company produced 40,000 designer cowboy boots, of which 36,000 were sold. Operating data for the month are summarized as follows: During June, Big Sky Creations produced 32,000 designer cowboy boots and sold 36,000 cowboy boots. Operating data for June are summarized as follows: Absorption and yariable costing income statements for two months and analysis Required: 1. Using the absorption costing concept, prepare income statements for (a) May and (b) June." 2. Using the variable costing concept, prepare income statements for (a) May and (b) June.* 3a. Explain the reason for the differences in operating income in (1) and (2) for May. 3b. Explain the reason for the differences in operating income in (1) and (2) for June. 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate more profitably in May or in June? Explain. * Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that resuits in a negative amount. For example: Net loss should be negative. Absorption and variable costing income statements for two months and analysis fa. Using the absoption costing concept, prepare income statements for May. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For exampie: Net loss should be negative. Feedback Check My Work 16. Using the absorption costing concept, prepare income statements for June. Be sure to compiete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (.) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For exampie: Net loss shouid be negative. Question not attempted. 2a. Using the variable costing concept, prepere income statements for May. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact warding of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that result in a negative amount. For exampie: Net loss shouid be negative. 2b. Using the variable costing concept, prepare income statements for June. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact wording of the answer chaices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers uniess the amount is a calculation that results in a negative amount. For example: Net loss should be negative. 3a. Explain the reason for the differences in operating income in (1) and (2) for May. For May, operating income reported under_ costing exceeds that reported under costing due to part of manufacturing costs that are expensed on the costing income statement, but not on the costing income statement. Feedback Check My Work Did inventory at the end of the month increase or decrease? Did the irventory value indude fixed manufacturing costs? 36. Explain the reason for the differences in operating income in (1) and (2) for June. For June, oper expensed on th Feedback Check My Work Did inventory at the end of the month increase or decrease? Did the inventory value indude fixed manufacturing costs? 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate move profitably in May or in June? Explain. Big Sky Creations Company was under the variable costing concept. The difference in operating income reported under the absorption costina concent is due to allocatinn bsorption and variable costing income statements for two months and analysis Instructions During the first month of operations ended May 31, Big Sky Creations Company produced 40,000 designer cowboy boots, of which 36,000 were sold. Operating data for the month are summarized as follows: During June, Big Sky Creations produced 32,000 designer cowboy boots and sold 36,000 cowboy boots. Operating data for June are summarized as follows: Absorption and yariable costing income statements for two months and analysis Required: 1. Using the absorption costing concept, prepare income statements for (a) May and (b) June." 2. Using the variable costing concept, prepare income statements for (a) May and (b) June.* 3a. Explain the reason for the differences in operating income in (1) and (2) for May. 3b. Explain the reason for the differences in operating income in (1) and (2) for June. 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate more profitably in May or in June? Explain. * Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that resuits in a negative amount. For example: Net loss should be negative. Absorption and variable costing income statements for two months and analysis fa. Using the absoption costing concept, prepare income statements for May. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For exampie: Net loss should be negative. Feedback Check My Work 16. Using the absorption costing concept, prepare income statements for June. Be sure to compiete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (.) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For exampie: Net loss shouid be negative. Question not attempted. 2a. Using the variable costing concept, prepere income statements for May. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact warding of the answer choices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that result in a negative amount. For exampie: Net loss shouid be negative. 2b. Using the variable costing concept, prepare income statements for June. Be sure to complete the statement heading. Refer to the list of Labeis and Amount Descriptions provided for the exact wording of the answer chaices for text entries. A colon (:) will automatically appear if it is required. Enter amounts as positive numbers uniess the amount is a calculation that results in a negative amount. For example: Net loss should be negative. 3a. Explain the reason for the differences in operating income in (1) and (2) for May. For May, operating income reported under_ costing exceeds that reported under costing due to part of manufacturing costs that are expensed on the costing income statement, but not on the costing income statement. Feedback Check My Work Did inventory at the end of the month increase or decrease? Did the irventory value indude fixed manufacturing costs? 36. Explain the reason for the differences in operating income in (1) and (2) for June. For June, oper expensed on th Feedback Check My Work Did inventory at the end of the month increase or decrease? Did the inventory value indude fixed manufacturing costs? 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate move profitably in May or in June? Explain. Big Sky Creations Company was under the variable costing concept. The difference in operating income reported under the absorption costina concent is due to allocatinn