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 (420,000 units)				$6,980,000
Variable cost of goods sold:
Variable cost of goods manufactured (500,000 units $13 per unit)		$6,500,000
Less ending inventory (80,000 units $13 per unit)		1,040,000
Variable cost of goods sold				5,460,000
Manufacturing margin				$1,520,000
Variable selling and administrative expenses				80,000
Contribution margin				$1,440,000
Fixed costs:
Fixed manufacturing costs		$160,000
Fixed selling and administrative expenses		73,000		233,000
Income from operations				$1,207,000

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

a. Prepare an absorption costing income statement. Round your answers to the nearest dollar.

All the bullets are the options I have for those boxes (:

Tudor Manufacturing Co.
Income Statement-Absorption Costing
For the Month Ended June 30
Cost of goods manufactured Ending inventory Gross profit Sales Selling and administrative expenses				$_______________
Cost of goods sold:
Cost of goods manufactured Cost of goods sold Gross profit Sales Selling and administrative expenses		$___________
Less cost of goods sold Less ending inventory Less gross profit Less sales Less selling and administrative expenses		___________
Cost of goods manufactured Cost of goods sold Gross profit Sales Selling and administrative expenses				_____________
Cost of goods manufactured Cost of goods sold Gross profit Sales Selling and administrative expenses				$____________
Cost of goods manufactured Cost of goods sold Gross profit Sales Selling and administrative expenses				_____________
Income from operations				$____________

b. Reconcile the variable costing income from operations of $1,207,000 with the absorption costing income from operations determined in (a). Round your answers to the nearest dollar.

Reconciliation of Variable and Absorption Costing Income
Variable costing income from operations	$________
Absorption costing income from operations	________
Difference	$ _______