Hey, thanks for the help in advance I have already entered all of the labels. However, the other solutions on here are not correct for this certain problem.

Absorption and variable costing income statements Instructions Labels and Amount Descriptions Instructions During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 50,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows: Sales $9,240,000.00 2 Manufacturing costs: Direct materials $3,500,000.00 Direct labor 1,200,000.00 Variable manufacturing cost 850,000.00 Fixed manufacturing cost 600,000.00 6,150,000.00 Selling and administrative expenses: Variable $572,000.00 Fixed 352,000.00 924,000.00 Required: 1. Prepare an income statement based on the absorption costing concept 2. Prepare an income statement based on the variable costing concept.* 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). *Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (-) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign. abels and Amount Descriptions 1. Prepare an income statement based on the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (;) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign. Kodiak Fridgeration Company Score: 44768 Absorption Costing Income Statement For the Month Ended August 31 $9,240,000.00 1 Sales 2 Cost of goods sold: Cost of goods manufactured 4 Inventory, August 31 Total cost of goods sold Gross profit 7 Selling and administrative expenses 8 Income from operations Points: 10.35/16 Feedback Check My Work Sales - (Cost of Goods Manufactured - Ending Inventory*) = Gross Profit; Gross Profit - Selling and Administrative Expenses = Income from Operations. * (Manufactured Units - Sold Units) x (Total Manufacturing Costs/Manufactured Units) Variable Costing Income Statement Shaded cells have feedback. 2. Prepare an income statement based on the variable costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign. Score: 62/102 Kodiak Fridgeration Company Variable Costing Income Statement For the Month Ended August 31 1 Sales $9,240,000.00 2 Variable cost of goods sold: Variable cost of goods manufactured Inventory, August 31 Total variable cost of goods sold 5 6 Manufacturing margin 7 Variable selling and administrative expenses 8 Contribution margin 9 Fixed costs: 10 Fixed manufacturing costs 11 Fixed selling and administrative expenses Total fixed costs 13 Income from operations Points: 15.2 / 25 Check My Work Sales - Variable Cost of Goods Sold* = Manufacturing Margin; Manufacturing Margin - Variable Selling and Administrative Expenses = Contribution Margin; Contribution Margin - (Fixed Manufacturing Costs + Fixed Selling and Administrative Expenses) = Income from Operations. *Variable Cost of Goods Sold = Variable Cost of Goods Manufactured - [(Manufactured Units - Sold Units) x (Variable Manufacturing Costs/Manufactured Units)] Final Question Shaded cells have feedback. 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2) The income from operations reported under absorption costing exceeds the income from operations reported under variable costing by the difference between the two, due to fixed manufacturing costs that are deferred to a future month under absorption costing. Points: 414 Feedback Check My Work Recall that fixed factory overhead costs are considered a period expense under variable costing