During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 44,000 mini refrigerators, of which 39,000 were sold. Operating data for the month are summarized as follows: 1 Sales $7,020,000.00 2 Manufacturing costs: 3 3 Direct materials $3,080,000.00 4 Direct labor 1,056,000.00 5 Variable manufacturing cost 880,000.00 Fixed manufacturing cost 616,000.00 5,632,000.00 3 Direct materials $3,080,000.00 4 Direct labor 1,056,000.00 5 880,000.00 Variable manufacturing cost Fixed manufacturing cost 616,000.00 5,632,000.00 6 7 Selling and administrative expenses: $663,000.00 Variable 273,000.00 936,000.00 9 Fixed 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: Net loss should be negative. Absorption Costing Income Statement Absorption Costing Income Statement (Label) 1 2 (Label) 4 5 6 7 00 Kodiak Fridgeration Company Variable Costing Income Statement (Label) 2 (Label) 3 5 6 7 Variable Costing Income Statement 6 8 9 (Label) 10 11 12 13