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Income Statements under Absorption Costing and Variable Costing Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (69,300 units) during the first month, creating an ending inventory of 6,300 units. During Jur the company produced 63,000 garments during the month but sold 69,300 units at $110 per unit. The June manufacturing costs and selling and administrative expenses were as follows: a. Prepare an income statement according to the absorption costing concept ror Jurve a. Prepare an income statement according to the absorption costing concept for June. b. Prepare an income statement according to the variable costing concept for June. 5 more Check My Work uses remaining b. Prepare an income statement according to the variable costing concept for June c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under , all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory decreases, the income statement will have a lower income from operations