Instructions On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept. 1 Sales (96,000 units) Cost of goods sold: Cost of goods manufactured Less ending inventory (24,000 units) 2 3 Rhys Company Income Statement - Absorption Costing For the Month Ended July 31, 2016 14 $3,120,000.00 624,000.00 $4,440,000.00

Rhys Company Income Statement-Absorption Costing For the Month Ended July 31, 2016 \begin{tabular}{|c|c|c|c|} \hline 1 & Sales (96,000 units ) & & $4.440,000.00 \\ \hline 2 & Cost of goods sold: & & \\ \hline= & Cost of goods manufactured & $5,12000000 & \\ \hline 4 & Less ending inventory (24,000 units) & 624,000,00 & \\ \hline 5 & Cost of goods sold & & 2,496,00000 \\ \hline 6 & Gross profit & & $1,944,000,00 \\ \hline 8 & Selling and administrative expenses & & 288.000 .00 \\ \hlinet & Income from operations: & & $1,656,00000 \\ \hline \end{tabular} B. Reconcile the absorption costing income from operations of 51,656,000 with the variable costing income from operations previousily desermined Rhys Company Income from Operations - Absorption vs Variabie Costing For the Month Ended July 31, 2016 1 Absorption costing income from operations 1.) Variable costing incone from operations 3. Difference On July 31, 2016, the end of the tist month of operations, Rins Company propared the folowing income statement, based on the absorition cosing concept. A. Prepare a vanabie costing income statement, astuming that the fored manufacturing coats were $132,000 and the variatie seling and adminstrabive Rhys Company Income Statement-Absorption Costing For the Month Ended July 31, 2016 \begin{tabular}{|c|c|c|c|} \hline 1 & Sales (96,000 units ) & & $4.440,000.00 \\ \hline 2 & Cost of goods sold: & & \\ \hline= & Cost of goods manufactured & $5,12000000 & \\ \hline 4 & Less ending inventory (24,000 units) & 624,000,00 & \\ \hline 5 & Cost of goods sold & & 2,496,00000 \\ \hline 6 & Gross profit & & $1,944,000,00 \\ \hline 8 & Selling and administrative expenses & & 288.000 .00 \\ \hlinet & Income from operations: & & $1,656,00000 \\ \hline \end{tabular} B. Reconcile the absorption costing income from operations of 51,656,000 with the variable costing income from operations previousily desermined Rhys Company Income from Operations - Absorption vs Variabie Costing For the Month Ended July 31, 2016 1 Absorption costing income from operations 1.) Variable costing incone from operations 3. Difference On July 31, 2016, the end of the tist month of operations, Rins Company propared the folowing income statement, based on the absorition cosing concept. A. Prepare a vanabie costing income statement, astuming that the fored manufacturing coats were $132,000 and the variatie seling and adminstrabive