Income Statements under Absorption Costing and Variable Costing Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (61,600 units) during the first month, creating an ending inventory of 5,600 units. During February, the company produced 56,000 units during the month but sold 61,600 units at $95 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Units Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable 5,600 $38.00 $212,800 Fixed 5,600 14.00 78,400 Total $52.00 $291,200 Manufacturing costs in February: Variable Fixed Total 56,000 56,000 15.40 $38.00 $2,128,000 862,400 $53.40 $2,990,400 Selling and administrative expenses in February: Variable 61,600 $18.20 $1,121,120 Fixed 61,600 7.00 431,200 Total $25.20 $1,552,320 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 Sales Cost of goods sold: Beginning inventory 291,200 Cost of goods manufactured 2,990,400 Total cost of goods sold Gross profit Selling and administrative expenses Operating income 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