Income Statements under Absorption Costing and Variable Costing 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 (37,400 units) during the first month, creating an ending inventory of 3,400 units. During June, the company produced 34,000 garments during the month but sold 37,400 units at $100 per unit. The June manufacturing costs and selling and administrative expenses were as follows: Number of Unit Total Cost Units Cost Manufacturing costs in June 1 beginning inventory: Variable 3,400 3,400 Fixed $40.00 15.00 $55.00 $136,000 51,000 $187,000 Total Manufacturing costs in June: Variable 34,000 34,000 Fixed $40.00 16.50 $56.50 $1,360,000 561,000 $1,921,000 Total Selling and administrative expenses in June: Variable 37,400 37,400 Fixed 19.50 7.00 26.50 $729,300 261,800 $991,100 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 Sales Cost of goods sold: Beginning inventory Cost of goods manufactured Total cost of goods sold Gross profit Selling and administrative expenses Income from operations 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 Sales Variable cost of goods sold Manufacturing margin POLIU Variable selling and administrative expenses Contribution margin Fixed costs: Fixed manufacturing costs Fixed selling and administrative expenses Total fixed costs JO Income from operations