fix as needed

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, 375 bikes were produced and 225 were sold; this left 150 bikes in ending Inventory. The income statement information under variable costing follows Sales (225 * $1,600) Variable product cost (225 * $625) Variable selling and administrative expenses (225 * $65) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $360,000 140.625 14,625 204,750 56,250 75,000 $ 73,500 1. Prepare this company's income statement for its first month of operations under absorption costing. HAYEK BIKES Absorption Costing Income Statement $ 350,000 Sales Less: Cost of goods sold Variable product costs Fixed overhead costs $ 140,025 33,750 Cost of goods sold Gross margin 174,375 185,525 Variable selling and administrative expenses Fixed selling and administrative costs 14.625 75,000 Total selling general and administrative expenses Net income (ons) 89,625 96,000 $ 1. Prepare this company's income statement for its first month of operations under absorption costing, HAYEK BIKES Absorption Costing Income Statement $360,000 Sales Less: Cost of goods sold Variable product costs Fixed overhead costs $ 140,625 33,750 Cost of goods sold Gross margin 174,375 185,525 Variable selling and administrative expenses Fixed selling and administrative costs 14,625 75,000 Total selling general and administrative expenses Net income (loss) 89,625 96,000 $ Fixed costs added to inventory