eBookQuestion Content AreaVariable Costing Income StatementOn July $31,$ the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:Sales $(24,000$ units$)$ $$1,536,000$Cost of goods sold: Cost of goods manufactured$$1,196,250$ Less ending inventory $(5,000$ units$)206,250$ Cost of goods sold $990,000$Gross profit $$546,000$Selling and administrative expenses $136,000$Income from operations $$410,000$Question Content Areaa. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $$87,000$ and the variable selling and administrative expenses were $$62,000.$ In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.keAssignment$/$takeAssignmentMain$.$do$?$invoker$=$assignments&takeAssignmentSessionLocator$=$assignment$-$take&inprogress$=$false

eBook

Rhys Company

Income Statement$-$Variable Costing

For the Month Ended July $31$

Variable cost of goods sold:

$

Fixed costs:

Income from operations

$

b$.$ Reconcile the absorption costing income from operations of $$410,000$ with the variable costing income from operations determined in $($a$).$

Reconciliation of Absorption and Variable Costing Income

Absorption costing income from operations $

Variable costing income from operations

Difference