eBook Show Me How Calculator Print Item During the first month of operations ended July 31, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: Sales $100,000 Manufacturing costs: Direct materials $47,360 Direct labor 22,400 Variable manufacturing cost 12,160 Fixed manufacturing cost 15,360 97,280 Selling and administrative expenses Variable $10,920 Fixed 5,200 16,120 During August, Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats. Operating data for August are summarized as follows: Sales $104,000 Manufacturing costs Direct materials $29,600 Direct labor 14,000 Variable manufacturing cost 7,600 Fixed manufacturing cost 15,360 66,560 Selling and administrative expenses Variable $10.00 Fixed 5,200 16,120 Previous Check My Work more Check My Work uses remaining Required: 1a. Prepare income statement for July using the absorption costing concept. Head Gear Inc. Absorption Costing Income Statement For the Month Ended July 31 Sales 00 Cost of goods sold: 66,560 12,480 79,040 24,960 16,120 Operating loss 8,840 1b. Prepare income statement for August using the absorption costing concept. Head Gear Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales 104,000 Cost of goods sold: 66,560 18,240 84,800 19,200 16,120 Operating loss 3,080 2a. Prepare income statement for July using the variable costing concept. Head Gear Inc Variable Costing Income Statement For the Month Ended July 31 Sales 104,000 Variable cost of goods sold: Variable cost of goods manufactured 66,560 Cost of goods sold 10,920 77,480 $ 26,520 II Fixed costs: 2b. Prepare income statement for August using the variable costing concept. Head Gear Inc Variable Costing Income Statement For the Month Ended August 31 Variable cost of goods sold: