During the first month of operations ended March 31, IceBox Fridgeration Company manufactured 50,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: Direct materials Direct labor 5 Variable manufacturing cost 6 Fixed manufacturing cost 7 Selling and administrative expenses: Variable Fixed 3 4 8 9 $3,500,000.00 1,200,000.00 850,000.00 600,000.00 $572,000.00 352,000.00 $9,240,000.00 6,150,000.00 924,000.00 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).

During the frst month of operations ended March 31, IceBox Fridgeration Company manutactured 50,000 mini retrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows: Required: 1. Prepare an income stalement based on the absoption costing concept. 2. Prepure an income statement based on the variable costing concept. 3. Explain the reason for the diflerence in the amount of eperating income reported in (1) and (2)