On July 31, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:

Sales (20,000 units)					$1,500,000
Cost of goods sold:
	Cost of goods manufactured		$1,122,000
	Less ending inventory (4,000 units)		187,000
	Cost of goods sold				935,000
Gross profit					$565,000
Selling and administrative expenses					75,000
Income from operations					$490,000

a. Prepare a variable costing income statement, assuming that the fixed manufacturing costs were $48,000 and the variable selling and administrative expenses were $34,000. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

*The bullet points are the options I have for those boxes and the lines are where i need to enter a value

Rhys Company
Income Statement-Variable Costing
For the Month Ended July 31
Ending inventory Fixed selling and administrative expenses Sales Variable cost of goods manufactured Variable selling and administrative expenses		$______________
Variable cost of goods sold:
Fixed manufacturing costs Fixed selling and administrative expenses Sales Variable cost of goods manufactured Variable selling and administrative expenses	$______________
Less ending inventory Less fixed selling and administrative expenses Less manufacturing costs Less sales Less variable selling and administrative expenses	_______________
Ending inventory Fixed selling and administrative expenses Sales Variable cost of goods manufactured Variable cost of goods sold		_______________
Contribution margin Manufacturing margin		$______________
Ending inventory Fixed manufacturing costs Fixed selling and administrative expenses Sales Variable selling and administrative expenses		_______________
Contribution margin Manufacturing margin		$_______________
Fixed costs:
Ending inventory Fixed manufacturing costs Manufacturing margin Sales Variable cost of goods manufactured	$_____________
Ending inventory Fixed selling and administrative expenses Sales Variable cost of goods manufactured Variable selling and administrative expenses	______________	_______________
Income from operations		$_______________

b. Reconcile the absorption costing income from operations of $490,000 with the variable costing income from operations determined in (a).

Reconciliation of Absorption and Variable Costing Income
Absorption costing income from operations	$_________
Variable costing income from operations	__________
Difference	$_________