Exercise 06-6 Absorption costing income statement LO P2 Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold; this left 125 bikes in ending inventory. The income statement information under variable costing follows. Sales (225 * $1,800) Variable product cost (225 * $675) Variable selling and administrative expenses (225 * $55) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $ 405,000 151,875 12,375 240,750 59,500 85,000 $ 96,250 1. Prepare this company's income statement for its first month of operations under absorption costing, 2. Fill in the blanks: Prepare an income statement for the current year under absorption costing. KENZI KAYAKING Absorption Costing Income Statement Net income (loss) The dollar difference in variable costing income and absorption costing income units fixed overhead per unit.