instructions During the first month of operations ended July 31, Western Creations Company produced 56,000 designer cowboy hats, of which 52,000 were sold Operating data for the month are summarized as follows 5858,000.00 Manufacturing costs Direct materials 5408,800.00 Direct labor 128,800.00 Variable manufacturing cost 61,600.00 Fixed manufacturing cost 56000 50 655,20000 Scandinave Variable 551.200.00 26,000.00 57,200.00 During August, Western Creations produced 48.000 designer cowboy hats and sold 52,000 cowboy hats Operating data for August are summarted as follows 5858,000.00 Manufacturing costs Direct materials $350,400.00 Direct labor 110,400.00 Variable manufacturing cost 52,800.00 56,000.00 6 Fixed manufacturing cost 569,600.00 7 Selling and administrative expenses Variable $51.200.00 Ford 25.000,00 520000 Required: Required: 1. Using the absorption costing concept prepare income statements for (a) July and (b) August 2. Using the variable costing concept prepare income statements for (a) July and (b) August 3a Explain the reason for the differences in the amount of income from operations in (1) and (2) for July 3b Explain the reason for the differences in the amount of income from operations in (t) and (2) for August 4. Based on your answers to (1) and (2), did Western Creations Company operate more profitably in July or in August? Explain *Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically pear tregured. Enter Inventory, July 31 as a negative number using a minuss a nel ons is incurred, enter that amount as a negative number using a minussige