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 (183,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 163,000 units during the month but sold 183,000 units at $560 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $280.00 $5,600,000 Fixed 20,000 21.00 420,000 Total $301.00 $6,020,000 Manufacturing costs in February Variable 163,000 $280.00 $45,640,000 Fixed 163,000 24.20 3,944,600 Total $304,20 $49,584,600 Selling and administrative expenses in February Variable 183,000 16.10 $2,048,300 Fixed 183,000 3.00 549,000 Total 19.10 $3,495,300 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the below. a. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Cost of goods sold: b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 III Fixed costs: c. What is the reason for the difference in the amount of Operating Income reported in (a) Ind (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory decreases, the income statement will have a lower Operating income. File Home Insert Formulas Data Review View Help Tell me what you want to do Arial X Cut In Copy Format Painter 10 AA BIUROA.EE General Paste 29 Wrap Text Merge Center 5. % , #8 Conditional format Form Undo Clipboard Font Alignment 327 Number D 2 Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity during the first month, creating an ending inventory. The following data summarize the results for the February manufacturing costs, 3 selling and administrative expenses and general information about Fresno Industries Inc.'s operations for January and February DATA Number of Units Unit Cost Total Cost 7 Manufacturing costs in February 1 beginning inventory 8 Variable 20,000 $280,00 $5,600,000 9 Foced 20,000 21.00 420.000 10 Total $301.00 $8,020,000 11 Manufacturing costs in February 12 Variable 163,000 $280.00 $45,640,000 13 Forced 163.000 24 20 14 3.944,600 Total $304 20 15 Seling and administrative expenses in February 16 Variable 183,000 17 $16.10 $2.946,300 Fixed 183,000 3.00 18 Total 549.000 19 $19.10 $3.495.300 20 Goods sold in February 21 183.000 $560 Select the corresponding accounts in the dropdowns in cells B27, B29 B34, B39:B43, B45:48. Using formulas and cell references, perform the required analysis and input vour answers into the green calls in the Cand columns. Enter all amounts as nos Data Sheeti 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 (183,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 163,000 units during the month but sold 183,000 units at $560 per unit. The February manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Units Cost Cost Manufacturing costs in February 1 beginning inventory: Variable 20,000 $280.00 $5,600,000 Fixed 20,000 21.00 420,000 Total $301.00 $6,020,000 Manufacturing costs in February Variable 163,000 $280.00 $45,640,000 Fixed 163,000 24.20 3,944,600 Total $304,20 $49,584,600 Selling and administrative expenses in February Variable 183,000 16.10 $2,048,300 Fixed 183,000 3.00 549,000 Total 19.10 $3,495,300 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the below. a. Prepare an income statement according to the absorption costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Absorption Costing Income Statement For the Month Ended February 28 Cost of goods sold: b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 b. Prepare an income statement according to the variable costing concept for February. Enter all amounts as positive numbers. Fresno Industries Inc. Variable Costing Income Statement For the Month Ended February 28 III Fixed costs: c. What is the reason for the difference in the amount of Operating Income reported in (a) Ind (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under of the fixed manufacturing cost is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory decreases, the income statement will have a lower Operating income. File Home Insert Formulas Data Review View Help Tell me what you want to do Arial X Cut In Copy Format Painter 10 AA BIUROA.EE General Paste 29 Wrap Text Merge Center 5. % , #8 Conditional format Form Undo Clipboard Font Alignment 327 Number D 2 Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity during the first month, creating an ending inventory. The following data summarize the results for the February manufacturing costs, 3 selling and administrative expenses and general information about Fresno Industries Inc.'s operations for January and February DATA Number of Units Unit Cost Total Cost 7 Manufacturing costs in February 1 beginning inventory 8 Variable 20,000 $280,00 $5,600,000 9 Foced 20,000 21.00 420.000 10 Total $301.00 $8,020,000 11 Manufacturing costs in February 12 Variable 163,000 $280.00 $45,640,000 13 Forced 163.000 24 20 14 3.944,600 Total $304 20 15 Seling and administrative expenses in February 16 Variable 183,000 17 $16.10 $2.946,300 Fixed 183,000 3.00 18 Total 549.000 19 $19.10 $3.495.300 20 Goods sold in February 21 183.000 $560 Select the corresponding accounts in the dropdowns in cells B27, B29 B34, B39:B43, B45:48. Using formulas and cell references, perform the required analysis and input vour answers into the green calls in the Cand columns. Enter all amounts as nos Data Sheeti