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: 1 Sales $4,320,000.00 ? Manufacturing costs: 3 Direct materials $1,600,000.00 4 Direct labor 1.440,000.00 5 240,000.00 320,000.00 5,600,000.00 Variable manufacturing cost 6 Fixed manufacturing cost 7 Selling and administrative expenses: $144.000.00 8 Variable 25,000.00 169,000.00 9 Fixed During August, Western Creations produced 64,000 designer cowboy hats and sold 72,000 cowboy hats. Operating data for August are summarized as follows 1 Sales 54.320,000.00 2 Manufacturing costs: Direct materials 3 $1.280,000.00 4 Direct labor 1.152,000.00 5 192.000.00 6 Variable manufacturing cost Fixed manufacturing cost 7 Selling and administrative expenses: 320,000.00 2.944,000.00 $144,000.00 Variable 25,000.00 169.000.00 Fixed Required: 1. Using the absorption costing concept, prepare income statements for (a) July and (b) August 2. Using the variable costing concept, prepare income statements for (@) July and (b) August 3a. Explain the reason for the differences in the amount of income from operations in (1) and (2) for July 3b. Explain the reason for the differences in the amount of income from operations in (1) and (2) for August Based on your answers to (1) and (2), did Western Creations Company operate more prortably in July or in August? Explain. *Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Be sure to complete the statement heading. A colon () will automatically appear if required Enter Inventory, July 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign 4. 1a Using the absorption costing concept, prepare income statements for July Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading A colon () will automatically appear if required Enter Inventory, July 31 as a negative number using a minus sign. If a not loss is incurred, enter that amount as a negative number using a minus sign Western Creations Company Score: 57/68 Absorption Costing Income Statement For the Month Ended July 31 $4.320.000.00 1 Sales $3,600,000.00 3 Cost of goods sold: Cost of goods manufactured Inventory.July 31 Stades els nerede For the Month Ended July 31 1 Sales 54,320,000.00 53.600,000.00 2 Cost of goods sold: Cost of goods manufactured Inventory, July 31 Total cost of goods sold 6 Gross profit Selling and administrative expenses 8 Income from operations 5 $1,080,000.00 169.000.00 $911,000.00 16. Using the absorption costing concept prepare income statements for August Refer to theists of Labels and Amount Descriptions for the end wording of the answer choices for text entries. Be sure to complete the statement heuding A colon () will automatically pear trequired. If a net loss incurred, enter that amount as a negative number using a minus sign Question not attempted. Western Creations Company Score: 0/68 Absorption Costing Income Statement (laba) 2a Using the variable costing concept, prepare income statements for buy Refer to the ists of Label and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement readingA colon () will automatically appeare required Enter Inventory, 31 as a negative number using a minus sign of a net loss is incurred, enter that amount as a negative number csing a minus sin Question not attempted. Western Creations Company Score: 0/110 Variable Costing Income Statement (Label) 26. Using the variable costing concept prepare income statements for August Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Be sure to complete the statement heading A colon will automatically appear if required. If a net ons is incurred enter that amount as a negative number using a minus sign Question not attempted. Score: 0/110 Western Creations Company Variable Costing Income Statement Label)