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 10 per unit FMOH 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. Absorption Costing Income Statement Sales Cost of Goods Sold: 80,000 Direct labor Fixed manufacturing overhead Total Cost of Goods Sold Gross profit 128,000 Selling expenses 25,000 45,000 Net income