Exercise 6-5 Lyon Furnaces 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, this company prepares the following income statement information under variable costing. During this first month of operations, 375 furnaces were produced and 225 were sold; this left 150 furnaces in ending inventory. 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Explain the difference in income between the variable costing and absorption costing income statement