Happy Trails has the following information for its manufacturing:

Direct Materials	$16
Direct Labor	$16
Variable Manufacturing Overhead	$3
Fixed Manufacturing Overhead	$25
Units Produced	27,000
Units Sold	18,000

Its income statement under absorption costing is:

Sales	$1,901,000
Beginning Inventory	$0
Cost of Goods Manufactured	1,620,000
Cost of Goods Available for Sale	$1,620,000
- Ending Inventory	540,000
Cost of Goods Sold	$1,080,000
Gross Profit	$821,000
-Sales and Admin. Expenses:
Variable	$108,000
Fixed	200,000
Total Sales and Admin. Expenses	$308,000
Net Operating Income	$513,000

Prepare an income statement with variable costing and a reconciliation statement between both methods. If an amount box does not require an entry, leave it blank.

Happy Trails Variable Costing Income Statement $ $ $ $ $ $ Total Sales and Administrative Expenses Reconciliation