Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (174,000 units) during the first month, creating an ending inventory of 21,000 units. During February, the company produced 153,000 units during the month but sold 174,000 units at $510 per unit. The February manufacturing costs and selling and administrative expenses were as follows:

	Number of Units		Unit Cost		Total Cost
Manufacturing costs in February 1 beginning inventory:
Variable	21,000		$255.00		$5,355,000
Fixed	21,000		21.00		441,000
Total			$276.00		$5,796,000
Manufacturing costs in February:
Variable	153,000		$255.00		$39,015,000
Fixed	153,000		24.20		3,702,600
Total			$279.20		$42,717,600
Selling and administrative expenses in February:
Variable	174,000		16.10		$2,801,400
Fixed	174,000		2.00		348,000
Total			18.10		$3,149,400

. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers.

Fresno Industries Inc.
Absorption Costing Income Statement
For the Month Ended February 28
Sales				$
Cost of goods sold:
Beginning inventory		$
Cost of goods manufactured		$
Total cost of goods sold				$
Gross profit				$
Selling and administrative expenses				$
Operating income				$

b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers.

Fresno Industries Inc.
Variable Costing Income Statement
For the Month Ended February 28
Sales				$
Variable cost of goods sold				$
Manufacturing margin				$
Variable selling and administrative expenses				$
Contribution margin				$
Fixed costs:
Fixed manufacturing costs		$
Fixed selling and administrative expenses		$
Total fixed costs				$
Operating income				$