On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept:

Sales (80,000 units)			$880,000
Variable cost of goods sold:
	Variable cost of goods manufactured (100,000 units x $8 per unit)	$800,000
	Less ending inventory (20,000 units x $8 per unit)	160,000
	Variable cost of goods sold			640,000
Manufacturing margin			$240,000
Variable selling and administrative expenses			8,000
Contribution margin			$232,000
Fixed costs:
	Fixed manufacturing costs	$30,000
	Fixed selling and administrative expenses	15,000		45,000
Income from operations			$187,000

a.Prepare an absorption costing income statement. In your computations, round unit costs to two decimal places and round final answers to the nearest dollar.

Cost of goods manufacturedEnding inventoryGross profitSalesSelling and administrative expensesSales		$Sales
Cost of goods sold:
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expensesCost of goods manufactured	$Cost of goods manufactured
Less cost of goods soldLess ending inventoryLess gross profitLess salesless selling and administrative expensesLess ending inventory	Less ending inventory
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expensesCost of goods sold		Cost of goods sold
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expensesGross profit		$Gross profit
Cost of goods manufacturedCost of goods soldGross profitSalesSelling and administrative expensesSelling and administrative expenses		Selling and administrative expenses
Income from operations		$fill in the blank 7009f2fa6fba072_13

b.Reconcile the variable costing income from operations of $187,000 with the absorption costing income from operations determined in (a).

Variable costing income from operations	$fill in the blank 50e0aaf7efd0057_1
Absorption costing income from operations	fill in the blank 50e0aaf7efd0057_2
Difference	$fill in the blank 50e0aaf7efd0057_3