Instructions During the first month of operations onded 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 5 $5,100,000.00 2 Manufacturing costs: Direct materials * Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable 1,800,000.00 1,200,000.00 6 840,000.00 8940,000.00 1 $972,000.00 324,000.00 - Fixed 1.296,000.00 Required: 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 income from operations roported in (1) and (2) *Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entrios. Be sure to complete the statement heading. A colon () will automatically appear it required. Enter Inventory, August 31 as a negativo number using a minus sign. I a net loss is incurred, enter that amount as a negative number using a minus sign Labels and Amount Descriptions X Labels August 31 Cost of goods sold Fixed costs For the Month Ended August 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 Income from operations TO Inventory, August 31 Loss from operations Labels and Amount Descriptions Fixed selling and administrative expenses Gross profit Income from operations Inventory, August 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 Abeception Costing Income Statement 1. Prepare an income statement based on the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete tho statement heading. A colon () will automatically appear required. Enter Inventory, August 31 as a negative number using a minus sign. If a not loss is incurred, enter that amount as a negative number using a minus sign Kodiak Fridgeration Company Absorption Costing Income Statement Label 1 (Labely 3 . Variable Costing Income Statement Kodiak Fridgeration Company Variable Costing Income Statement (Label) 1 1 2 (Label ) 3 3 4 5 6 7 00 9 (Label) 10 11 12 13 Final Question 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 operation reported under Gifference betwoon the two, due to manufacturing costs that are deferred to a future month under costing by the costing
