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 iogo. The company began ogerations on Ma and operated at 100% of capacty (68,200 units) during the first month, creating an ending inventory of 6, 200 units, During June, the company produced 62,000 garments during the month but sold 65,200 units at $75 per unit. The June manufacturing costs and selling and administrative expenses were as follows: a. Prepare an incomme staterment according to the absorpeign costing concegit for lune a. Prepare an income statement according to the absorption costing concept for June. b. Prepare an income statement accorditg to the variable costing concept for June. b. Prepare an income statement according to the variable costing concept for lune. c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? Under the method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenies. Under of the fixed manutacturing cost is deducted in the peribd in which it is incurred, regardiess of the amount of inventory change. Thus, when inventory decreases, the income statement will have a lower income from operations