Hamington Manufacturing manufactures a single product that it will sell for $$76$ per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single unit of its product is as follows:

$($Click the icon to view the data.$)$

During its first year of operations, the company plans to manufacture $25,000$ units and anticipates selling $21,000$ of those units. During the second year of its operations, the company plans to manufacture $25,000$ units and anticipates selling $26,000$ units $($it has units in beginning inventory for the second year from its first year of operations$).$

Requirement $1.$ Prepare an absorption costing income statement for $($a$)$ the first year of operations and $($b$)$ the second year of operations.

Hamington Manufacturing

Income Statement $($Absorption Costing$)$

$\backslash$table$[[$sorption Costing$)],[,,,$Year $1,($b$)$ Year $2],[$Sales revenue,$$,1,596,000,$$ $1,976,000$