Instructions Labels and Amount Descriptions Income Statement Reconciliation x Instructions On July 31, the end of the first month of operations, Rhys Company prepared the following income statement based on the absorption costing concept Rhys Company Income Statement - Absorption Costing For the Month Ended July 31 $4,389,250,00 3 $3,159,000.00 1 Sales (97.000 units) 2 Cost of goods sold: Cost of goods manufactured Less ending inventory (20,000 units) Cost of goods sold 6 Gross profit Selling and administrative expenses 4 540,000.00 5 2,619,000.00 $1,770,250.00 281,000.00 ons Income Statement Reconciliation X $4,389,250.00 Instructions 1 Sales (97,000 units) 2 Cost of goods sold: Cost of goods manufactured Tess ending inventory (20,000 units) 3 $3,159,000.00 4 540,000.00 2,619,000.00 $1,770,250.00 Cost of goods sold 6 Gross profit Selling and administrative expenses 8 Income from operations 281,000.00 $1,489.250,00 Required: a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $140,400 and the variable selling and administrative expenses were $116,400 Be sure to complete the statement heading Refer to the list of Labels and Amount Descriptions provided for the exact Required: a Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $140,400 and the variable selling and administrative expenses were $116,400. 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. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative. Expenses should be positive. "Less" or "Plus" and colons will automatically appear if it is required. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar. b. Reconcile the absorption costing income from operations of $1,489,250 with the vanable costing income from operations determined in (a). Be sure to complete the statement heading