Instructions During the first month of operations ended May 31, Big Sky Creations Company produced 55,000 designer cowboy boots, of which 51,900 were sold Operating data for the month are summarized as follows: 1 Sales $804,450,00 2 Manufacturing costs Direct materials $467,500.00 - Direct labor 126,500.00 77,000.00 Variable manufacturing cost Fixed manufacturing cost 55,000.00 726,000.00 7 Selling and administrative expenses: 8 Variable $25,950.00 25,950.00 Fored 51,900.00 Check My Work Instructions During June, Big Sky Creations produced 48,800 designer cowboy boots and sold 51,900 cowboy boots Operating data for June are summarized as follows 1 Sales $804,450.00 2 Manufacturing costs Direct materials 5414,800.00 + Direct labor 112.240,00 68,320.00 55,000.00 650,360.00 5 Variable manufacturing cost Fixed manufacturing cost 7 Selling and administrative expenses: $25,950.00 Variable 25,950,00 51,900.00 Fixed Check My Work Required: 1 Using the absorption costing concept, prepare income statements for (a) May and (b) June 2. Using the variable costing concept, prepare income statements for (a) May and (b) June 3a. Explain the reason for the differences in operating income in (1) and (2) for May 3b. Explain the reason for the differences in operating income in (1) and (2) for June. 4. Based on your answers to (1) and (2), did Big Sky Creations Company operate more profitably in May or in June? Explain *Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative Check My Work All work saved Assignment Score: 87.67% Type here to search Labels and Amount Descriptions Labels June 30 Cost of goods sold Fixed costs For the Month Ended June 30 For the Month Ended May 31 May 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, June 1 Check My Work GU Labels and Amount Descriptions > Fixed manufacturing costs Freed selling and administrative expenses Gross profit Operating income Inventory, June 1 Inventory, May 31 Operating loss 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 12 Check My Work Absorption Costing Income Statement-May Shaded calls have feedback 1a. Using the absorption costing concept prepare income statements for May Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative Question not attempted. Score: 0/65 Big Sky Creations Company Absorption Costing Income Statement (Label) 2 Label 3 Check My Work Instructions Labels and Amount Descriptions Absorption Costing Income Statement-May Absorption Costing Income Statement-June Absorption Costing Income Statement-June Shaded calls have feedback 10. Using the absorption costing concept, prepare come statements for June. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries A colon () will automatically appear if it is required Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Question not attempted. Score: 0/65 Big Sky Creations Company Absorption Costing Income Statement (Label) ? Label Instructions Labels and Amount Descriptions Absorption Costing Income Statement May Absorption Costing Income Statement-June Variable Costing Income Statement-May Shaded calla nave feedback 2. Using the vanable costing concept prepare income statements for May Be sure to complete the statement heading Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (will automatically appear if it is required Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example, Net loss should be negative Question not attempted. Score: 0/106 Big Sky Creations Company Vanable Costing Income Statement (Label) 1 (Label) 5 Check My Work Variable Costing Income Statement June Shined cellar feador X 25. Using the variable costing concept, prepare income statements June. Be sure to complete the statement heading Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative Question not attempted. Big Sky Creations Company Score: 0/106 Variable Costing Income Statement (Label) 2 Label) 3