Instructions Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacit (92,000 units) during the first month, creating an ending inventory of 9,000 units. During June, the company produced 83,800 garments during the month but sold 92,800 units at $90 per unit. The June manufacturing costs and selling and administrative expenses were as follows: Number of Units Unit Cost Total Cost Manufacturing costs in June 1 beginning inventory: Variable 9,000 $56 $ 504,000 Fixed 9,000 12 108,000 Total $68 $612,000 Manufacturing costs in June: Variable 83,800 $56 $ 4,692,800 Fixed 83,800 14 1.173,200 Total $70 $5.866.000 Instructions Total $70 $5,866,000 Selling and administrative expenses in June: Variable 92,800 $18 $ 1,670,400 Fixed 92,800 4 371,200 Total $22 $2,041,600 Required: a. Prepare an income statement according to the absorption costing concept for June. b. Prepare an income statement according to the variable costing concept for June. c. What is the reason for the difference in the amount of income from operations reported in (a) and (b)? *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 it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Joplin Industries Inc. Absorption Costing Income Statement (Label) 1 2. Cost of goods sold: 3 4 5 6 7 8 Variable Costing Income Statement b. Prepare an income statement according to the variable costing concept for June. Refer to the lists of Labels and Amount Descriptions for the exact warding of the answer choices for text entries. Be sure to complete the statement heading. A colon () will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Joplin Industries Inc. Variable Costing Income Statement (Label) 2 3 5 6 (Label) Variable Costing Income Statement Joplin Industries Inc. Variable Costing Income Statement (Label) 2 6 (Label) 7 8 9 10 Labels and Amount Descriptions Labels June 30 Fixed costs For the Month Ended June 30 Amount Descriptions Beginning inventory Contribution margin Contribution margin ratio Cost of goods manufactured Cost of goods sold Fixed manufacturing costs Fixed selling and administrative expenses Labels and Amount Descriptions Gross profit Income from operations Loss from operations Manufacturing margin Planned contribution margin Sales Sales mix Selling and administrative expenses Total cost of goods sold Total fixed costs Variable cost of goods sold Variable selling and administrative expense