It is the end of $2020.$ Thurgood All minus Fixed Corporation began operations in January $2019.$ The company is so named because it has no variable costs. All its costs are$$ fixed; they do not vary with output. Thurgood All minus Fixed Corp. is located on the bank of a river and has its own hydroelectric plant to supply$$ power, light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a small staff of$$ employees, all paid fixed annual salaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The following budgeted and actual data are for the operations of Thurgood All minus Fixed.

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Part $1$

Requirement $1.$ Prepare income statements with one column for $2019,$ one column for $2020,$ and one column for the $2$ years together using$($a$)$ variable costing and$($b$)$ absorption costing. $($Use parentheses or a minus sign for an operating$$ loss.$)$

Start by preparing the$($a$)$ variable costing income statement for $2019,2020,$ and the $2$ year total.

$2019$

Revenue

Fixed costs:

Manufacturing costs

Operating costs

Total fixed costs

Operating income $($loss$)$

The company uses budgeted production as the denominator level and writes off any$$ production$-$volume variance to cost of goods sold.

$2019$

$2020$

Sales

$22,000$ tons

$22,000$ tons

Production

$44,000$ tons

$0$ tons

Selling price

$$50$ per ton

$$50$ per ton

Costs $($all fixed$)$:

Manufacturing

$$880,000$

$$880,000$

Operating $($nonmanufacturing$)$

$$99,000$

$$99,000$

$$ Management adopted the$$ policy, effective January$1,2020,$ of producing only as much product as needed to fill sales orders. During $2020,$ sales were the same as for $2019$ and were filled entirely from inventory at the start of $2020.$

I need help breaking down the formulas to solve for the absorption costing income statement