Instructions During the first month of operations ended July 31, Westem Creations Company produced 56,000 designer Cowboy hats, of which 52,000 were sold Operating data for the month are summarized as follows: Sales 5558,000.00 Manufacturing costs: Direct materials 5408 300.00 Direct labor 12530000 Variable manufacturing cost Fredman tacturing cost 5600000 Selling and administrative expenses Variable $31,200.00 520000 Previous Check My Work Instructions During August, Western Creations produced 48,000 designer cowboy hats and sold 52,000 cowboy hats Operating data for August are summarted as follows 58500000 2 Manufacturing costs Direct materials $350.400.00 Direct Labor 110.40000 5250000 Variable manufacturing cost Fored manufacturing cost Selling and administrative expenses 30 569000 Varble $31.200.00 26,000.00 57 20000 Required: 1. Using the absorption costing concept, prepare income statements for (a) July and (6) August." 2. Using the variable costing concept, prepare income statements to July and (b) August." 3a. Explain the reason for the differences in the amount of income from operations (2) for July 3b. Explain the reason for the differences in the amount of income from operations in (1) and (2) For gust 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 lists 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 appear if required. Enter Inventory, July 31 as a negative number using a minus in Ifa nef loss is incurred, enter that amount as a negative number using a minus sign Absorption Costing Income Statement-July Shaded certave feedback X ta. Using the absorption costing concept, prepare income statements for July Refer to the list of Label 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 appearequired Enter Inventory, July 31 as a negative number using minus sign Tanet loss is incurred, enter that amount as a negative number using a minus sign Score 446 Western Creations Company Absorption Costing Income Statement For the Month Ended July 31 $85800000 Cost of oods sold Cost of goods manufactured Inventory, July 51 Total cost of goods sold Gross pront Selling and administrative expenses Income from operations