Instructions Absorption Costing Income Statement 1. Prepare an income statement based on the absorption costing concept. Income Statement instructions IceBox Fridgeration Company Absorption Costing Income Statement (Label) \begin{tabular}{|l|l|l|l|} \hline 1 & & \\ \hline 2 & (Label) & \\ \hline 3 & & \\ \hline 4 & & \\ \hline 5 & & \\ \hline 6 & & \\ \hline 7 & & \\ \hline 3 & & \\ \hline \end{tabular} 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). Final Question ( 3. Explain the reason for the difference in the amount of operating income reported in (1) and (2). The Operating income reported under costing exceeds the Operating income reported under costing, due to manufacturing costs that are deferred to a future month under costing- Labels and Amount Descriptions Labels March 31 Cost of goods sold Fixed costs For the Month Ended March 31 Variable cost of goods sold Amount Descriptions Contribution margin Contribution margin ratio Cost of goods manufactured Fixed manufacturing costs Fixed selling and administrative expenses Gross profit Operating income Inventory, March 31 Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Total variable cost of goods sold Variable cost of goods manufactured Variable selling and administrative expenses X) Income Statement instructions IceBox Fridgeration Company Variable Costing Income Statement (Label) \begin{tabular}{|l|l|l|l|l|} \hline 1 & & & \\ \hline 2 & (Label) & & \\ \hline 3 & & \\ \hline 4 & & \\ \hline 5 & & \\ \hline 6 & & \\ \hline 7 & & \\ \hline 1 & & \\ \hline 9 & (Label) \\ \hline 10 & & \\ \hline 11 & & \\ \hline 12 & & \\ \hline 13 & & \\ \hline \end{tabular}