Fresno Industries INC. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% capacity (63,800 units) during the first month, creating an ending inventory of 5,800 units. During February, the company produced 58,000 units during the month but sold 63,800 units at $110 per unit. The February manufacturing costs and selling and administrative expenses were as follows:

Income Statements under Absorption Costing and Vanuse Costing Fresno Industries Inc. manufactures and sells high quality camping tents. The company boom operations on January 1 and operated wit 100% of capacity (1,100 unts) un first month, creating an ending inventory of 5,800 units. During February, the company produced 58,000 units during the month bue sold 63,100 units at $110 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Manufacturing costs in February 1 beginning inventory Variable 5.800 $44.00 $255,200 Fixed 5,800 17.00 98,600 Total $61.00 5353,800 Cost Manufacturing costs in February Variable 58.000 Fixed 58.000 $44.00 52.552,000 18.70 1,054,600 562.70 53,636,600 Total Selling and administrative expenses in February Variable 63,500 63,800 $22.10 $1,409,960 7.00 446,600 $29.10 $1,856,550 Fixed Total 4. Prepare an income statement according to the absorption costing concept for the month ending relay 28 Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Previous Next Check My Work 2 more Check My Work usestemaning item a. Prepare an income statement according to the absorption costing concept for the month ending February 28. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Cost of goods sold: b. Prepare an income statement according to the variable costing concept for the month ending February 28, Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 Fixed costs: Check My Work 2 more Check My Work uses remaining All work saved eBook Show Me How Print nem b. Prepare an income statement according to the vantable costing concept for the month ending February 25, Fresno Industries Ing. Variable Costing Income Statement For the Month Ended February 28 Fixed od all of the What is the reason for the difference in the amount of operating income reported in (s) and ()? Under the method, the freed manufacturing cost included in the cost of goods sold is matched with the revenues. Under fired manufacturing cost is deducted in the period in which it is incorred, regardless of the amount of inventory change. Thus, when inventory decreases, the income statement will have a lower operating income