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complete all parts for a thumbs up please Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations
complete all parts for a thumbs up please Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Hesd Gear Inc. manufactured 24,300 hats, of which 22 , g00 were sold. Operating data for the month are summartaed as follows: During August, Head Gear Ine. manufactured 21,300 hats and sold 22,800 hats, Operating data for August are summarized as follows: 1a. Prepare income statement for July using the absorption costing concept. 1b. Prepare income statement for August using the absorption costing concept. Lb. Prepare income statement for August using the absorption costing concept. 2a. Prepare income statement for July using the variable costing concept. 2a Dranara inmma etatamant for tulv ucinn tha variable costing concept. 2b. Prepare income statement for August using the variable costing concept. able costing concept. 3a. For July, operating income reported under costing is less than costing due to part of manufacturing costs that are expensed. 3b. When targe changes in inventory levels occur from one period to the next, it is possible for managernent to misinterpret such increases (or decreases) in operating income as due to changes in: a. costs. b. prices. c. sales volume. d. "sales volume", "prices" and "costs" are correct. e. None of these choices is correct. The correct answer is: 4. Based on your answers to (1) and (2), did Head Gear Inc. operate more profitably in July or in August? Explain. Head Gear Inc. was under the variable costing concept. The difference in operating income reported under the absorption costing concept is due to allocating to the
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