During the test 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 summarize as follows Sales 51.520,000.00 3 Minulating to Direct material Die Labor $1.600.000,00 1.440,000.00 240,000.00 570,000.00 3.000 Variable manufacturing.com Fixed and acturing cost Selling and strative per Vio 1 5144,000.00 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 1.152,000.00 4 Direct bor 192.000,00 320,000.00 2,944,000.00 Variable manufacturing cost Feed manufacturing cost Selling and administrative expenses Variable $141.000.00 Fixed 25.000.00 169.000.00 Required: 1 Using the absorption costing concept, prepare income statements for (a) July and (b) August 2 Using the vanable costing concept prepare income statements for (a) 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 4. Based on your answers to (1) and (2) chid Western Creations Company operate more profitably 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 it required. Enter Inventory, July 31 as a negative number using a mus sign. Il a net loss is incurred enter that amount as a negative number using a minus sign ta ve abortion coating concept prepare come statoret for w Refer to the duty of Labels and Arnoux Descriptions for me exact wording of the answer choice for at intense are to commenter the statement heading A coton () will automatwy appeared. Etter hvertory 31 as a negative come un monta met loss incurred enter that amount as a negativnombrung am Westem Creations Company Absorption Costing income Statement 1 tb Using the absorption conting concepit, prepare income statements for August Refer to the sits of Label and Amount Descriptions for the exact wowding of the answer choice for best one Be sure to complete me statement heading Acolon () will automatically open it required a netko o cured enter that want as a negative numbering ass Wem Creation Company Absorption Costing Income Statement 5 I 2x tone the variabile conting concept prepare come statements for Jury Refer to the asts of Label and Amount Descoptions for the exact wording or me answer choices for externe ble swebs com estatement leading Acalon () will automatically appear o restored Frits vertory, uwy 37 as a negative number cang a moms og amet loss is incurred enter mat amount as a hegte number ang anus sign Westem Creation Company Variable Costing.come Statement tibel 6 (Label) 10 11 12 ST Vista Cosong income Statement August 2. Using the variable conting Concept prepare come statements for August Refer to the list of Label and Amount Descriptions for the exact wording of the choices for teens te sure to complete the statement heading Acolon () wir automatically appear frequred None oss is incurred enter that amagave number using a mi Western Creations Company Variatie Costing Income Statement Label 3 9 (Label) 10 10 11 11 12 12 13 Ja Expo Meason for the differences in the amount of income from operations in (t) and (2) for costing due to part of manufacturing costs that are For July income from operation reported under costing exceeds that reported under expened on the costing income statement, but not on the costing comes to Eaton e pesson for the differences in the amount of income from operations in (1) and (a) for August For August, income from operation reported under costing is less than that reported under costing due to part of y tratare expensed on the cosing income statementbut not on the costing income statement manufacturing costs from 4 Based on your answers to (1) and (2) did Winstom Creations Company operate more tably in July or in August? Explam under the variabile costing concept. The difference in income reported under the absorption costing concepts Westions Company was menang