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 (75,900 units) during the first month, creating an ending inventory of 6,900 units. During February, the company produced 69,000 units during the month but sold 75,900 units at $100 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in February 1 beginning inventory: Variable Fixed 6,900 6,900 $40.00 $276,000 15.00 103,500 $55.00 $379,500 Total Manufacturing costs in February: Variable 69,000 $40.00 $2,760,000 Fixed 69,000 16.50 1,138,500 Total $56.50 $3,898,500 Selling and administrative expenses in February: Variable 75,900 Fixed 75,900 Total $19.50 $1,480,050 7.00 531,300 $26.50 $2,011,350 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 Cost of goods sold: