Instructions During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 60,000 mini refrigerators, of which 54,000 were sold Operating data for the month are summarized as follows: 1 Sales $10.260,000.00 Manufacturing costs: Direct materials 35.000.000.00 Labor 1800,000.00 Vatable anifacturing 1.200.000,00 Food inufacturing, 200.00 8.940.000,00 evious M G Sales $10.260.00U.UU 2 Manufacturing costs: 3 Direct materials $5.100.000.00 4 Direct labor 1,800,000.00 5 1.200.000.00 6 840,000.00 8,940,000.00 Variable manufacturing cost Fixed manufacturing cost 7. Selling and administrative expenses: Variable 3 $972.000.00 9 Fixed 574,000.00 1.298,000.00 bsorption Costing Income Statement Kodiak Fridgeration Company Score: 52768 Absorption Costing Income Statement For the Month Ended August 31 1 Sales $10.260,000.00 2 Cost of goods sold: Cost of goods manufactured Inventory, August 31 3 $8.940,000.00 4 5 Total cost of goods sold 6 Gross profit ? Selling and administrative expenses 1.296.000.00 Je feminin Absorption Costing Income Statement For the Month Ended August 31 1 Sales $10,260,000.00 3 $8.940,000.00 4 2 Cost of goods sold: Cost of goods manufactured Inventory, August 31 Total cost of goods sold 6 Gross profit 7 Selling and administrative expenses 8 Income from operations 5 1.296,000.00 Kodiak Fridgeration Company Score: 70/102 Variable Costing Income Statement For the Month Ended August 31 1 Sales $10.260,000.00 2 Variable cost of goods sold: 3 Variable cost of goods manufactured 5 Total variable cost of goods sold 7 Variable selling and administrative expenses 972,000.00 k. Bay Work bsorption Costing Income Statement Variable Costing Income Statement 6 1 2 7 Variable selling and administrative expenses 972,000.00 3 8 Contribution margin 4 9 Fixed costs: 5 10 Fixed manufacturing costs $840,000.00 6 11 Fixed selling and administrative expenses 324,000.00 12 Total fixed costs 1,164,000.00 13 Income from operations Final Question Shaded cells have feedbac 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2) The income from operations reported under costing exceeds the income from operations reported under difference between the two, due to manufacturing costs that are deferred to a future month under costing by the costing Points 074 Fedback Check My Work Recall that forced factory overhead costs are considered a period expense under variable costing Previous Next Check My Work G