During the first month of operations ended May 31, 2016, Frost Point Fridge Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:

1	Sales		$8,800,000.00
2	Manufacturing costs:
3	Direct materials	$3,360,000.00
4	Direct labor	1,344,000.00
5	Variable manufacturing cost	816,000.00
6	Fixed manufacturing cost	528,000.00	6,048,000.00
7	Selling and administrative expenses:
8	Variable	$528,000.00
9	Fixed	352,000.00	880,000.00

1. Prepare an income statement based on the absorption costing concept. 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. Less, Plus or colons (:) will automatically appear if required. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Frost Point Fridge Company

Absorption Costing Income Statement

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2. Prepare an income statement based on the variable costing concept. 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. Less, Plus or colons (:) will automatically appear if required. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Frost Point Fridge Company

Variable Costing Income Statement

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