chp 21 pt 1

During the first month of operations ended August 31. Kodiak Fridgeration Company manufactured 80.000 mini rotrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows: 1 Sales $10,800.000,00 2 Manufacturing costs 3 Direct materials 56,400,000.00 4 1,600,000.00 5 Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses. 1,280,000.00 320,000.00 9,600,000.00 Variable $1,080,000.00 180,000.00 Fixed 1,260,000.00 Required: 1. Prepare an income statement based on the absorption costing concept 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2) "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 results in a negative amount For example: Netloss should be negative Absorption and variable costing income statements Instructions Labels and Amount Descriptions Absorption Costing Income Statement Variable Costing Income Statement Final Question Absorption Costing Income Statement 1. Prepare an income statement based on the absorption costing concept. Be sure to complete the statement heading Refer to the list of Label and Amount Descriptions provided for the exact wording of the answer choices for text entrios. A colon () will automatically appear it is required. Enter amounts as posve numbers unless the amount is a calculation that results in a negative amount. For example: Not loss should be negative. Kodiak Fridgeration Company Absorption Costing Income Statement (Label 1 ? (Label) 3 4 5 5 ? Variable Costing Income Statement 2. Prepare an income statement based on the variable costing concept. Be sure to complete the statement heading Refer to the ist 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 example, Net loss should be negative. Kodiak Fridgeration Company Variable Costing Income Statement Label 1 2 (Label 1 4 5 5 7 3 Label) 10 11 12 15 Final Question 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2) costing, due to The Operating income reported under costing exceeds the Operating income reported under manufacturing costs that are deferred to a future month under costing