Income Statemente under Aheorntion Costing and Variable Costing UAB UG Application Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (61,600 units) during the first month, creating an ending inventory of 5,600 units. During June, the company produced 56,000 garments during the month but sold 61,600 units at $100 per unit. The June manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Cost Manufacturing costs in June 1 beginning inventory: Variable 5,600 $40.00 $224,000 84,000 15.00 Fixed 5,600 $55.00 $308,000 Total Manufacturing costs in June: Variable 56,000 $40.00 $2,240,000 16.50 924,000 Fixed 56,000 $56.50 $3,164,000 Total Selling and administrative expenses in June: Variable 61,600 $1,201,200 19.50 61,600 7.00 431,200 Fixed 26.50 $1,632,400 Total a. Prepare an income statement according to the absorption costing concept for June. Joplin Industries Inc. Absorption Costing Income Statement For the Month Ended June 30 Cost of goods sold: $ b. Prepare an income statement according to the variable costing concept for June. Joplin Industries Inc. Variable Costing Income Statement For the Month Ended June 30 b. Prepare an income statement according to the variable costing concept for June. Joplin Industries Inc. Variable Costing Income Statement For the Month Ended June 30 Fixed costs: c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? v method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under Under the all of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory income statement will have a lower income from operations. change. Thus, when inventory decreases, the