Interior designers use the carpet products of Piscataway Mills, Inc. The company's top product is the Luxury blend. During the month of July 20X4, the company produced 200,000 square yards of this carpet and sold 180,000 square yards of what was produced. There were no beginning inventories at the beginning of July and no work in process inventory at the end of July. Production and other costs for the month are provided below. $ PISCATAWAY MILLS, INC. PRODUCTION AND COST DATA FOR MONTH OF JULY 20X4 Direct Materials Used Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Fixed Selling and Administrative Expenses 1,000,000 750,000 900,000 350,000 175,000 390,000 The company sells this carpet for $22.50 per square yard. REQUIRED: (1) Using the attached forms, prepare an income statement for the month of July 20X4 using full absorption costing. Round all calculations to the nearest whole dollar. Using the attached forms, prepare an income statement for the month of July 20X4 using variable costing. Round all calculations to the nearest whole dollar. (2) (1) PISCATAWAY MILLS, INC. INCOME STATEMENT--FULL ABSORPTION COSTING FOR MONTH OF JULY 20X4 Sales Revenue Cost of Goods Sold: Beginning Finished Goods Inventory Cost of Goods Manufactured: Total Cost of Goods Manufactured Total Cost of Goods Available For Sale Less: Ending Finished Goods Inventory Cost of Goods Sold Gross Margin From Sales Operating Expenses: Total Operating Expenses Operating Income (2) PISCATAWAY MILLS, INC. INCOME STATEMENT--VARIABLE COSTING FOR MONTH OF JULY 20X4 Sales Revenue Variable Cost of Goods Sold: Beginning Finished Goods Inventory Variable Cost of Goods Manufactured: Total Variable Cost of Goods Manufactured Total Cost of Goods Available For Sale Less: Ending Finished Goods Inventory Variable Cost of Goods Sold Manufacturing Margin Less Other Variable Costs: Total Other Variable Costs Contribution Margin Fixed Costs: Total Fixed Costs Operating Income