Income Statements under Absorption Costing and Varlable Costing Joplin Industries inci 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 ( 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 68,200 units at $75 per unit. The June manufacturing costs and selling and administrative expenses were as follows: a. Prepare an Income statement according to the absorption costing concept for June. b. Prepare an income statement according to the variable costing concept for June. b. Prepare on intome statement according to the viriable costing concept for June. c. What is the reason for the difference in the amount of ineame 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 revenues. Under of the foxed 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 income from operations