During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,000 were sold. Operating data for the month are summarized as follows:

Sales $4,320,000.002

Manufacturing costs:

Direct materials $1,600,000.00

Direct labor 1,440,000.00

Variable manufacturing cost 240,000.00

Fixed manufacturing cost 320,000.00

3,600,000.00

Selling and administrative expenses:

Variable $144,000.00

Fixed 25,000.00

169,000.00

During August, Western Creations produced 64,000 designer cowboy hats and sold 72,000 cowboy hats. Operating data for August are summarized as follows:

Sales $4,320,000.00

Manufacturing costs:

Direct materials $1,280,000.00

Direct labor 1,152,000.00

Variable manufacturing cost 192,000.00

Fixed manufacturing cost 320,000.00

2,944,000.00

Selling and administrative expenses:

Variable $144,000.00

Fixed 25,000.00

169,000.00

1 .Using the variable costing concept, prepare income statements for (a) July and (b) August.*

1a. Using the variable costing concept, prepare income statements for July

sales 4,320,000

variable cogs:

variables cogm ????

inventory july 31 ????

total variable cogs ????

manufacturing margin ????

variable selling and admin expenses 144,000

contribution margin ????

fixed costs:

fixed manufacturing cost 320,000

fixed selling and admin expenses 25,000

total fixed cost 345,000

income from operations ????

1b. Using the variable costing concept, prepare income statements for August.

sales 4,320,000

variable cogs:

variables cogm ????

inventory july 31 ????

total variable cogs ????

manufacturing margin ????

variable selling and admin expenses 144,000

contribution margin ????

fixed costs:

fixed manufacturing cost 320,000

fixed selling and admin expenses 25,000

total fixed cost 345,000

income from operations ????