John Company produces hats and sells them for $100 each. His cost to produce the hats are: DM 20 per unit . DL 30 per unit VMOH FMOH 10 per unit 40,000 Selling expenses are $5 per unit and are all variable. Administrative expenses of 25,000 are all fixed. John produced 5,000 hats; sold 4,000; and had no beginning inventory. Complete the income statement and calculation of net income under absorption costing. Sales Absorption Costing Income Statement Cost of Goods Sold: Direct labor Fixed manufacturing overhead Total Cost of Goods Sold Gross profit Selling expenses Net income 80,000 128,000 25,000 45,000