On May 31, the end of the first month of operations, Trendwest Office Equipment Company prepared the following income statement, based on the variable costing concept: trendwest office equipment company variable costing income statment for the month ended may 31, 2010 sales 12000 units.......................................... 648000 varible cost of good sold : variable cost of good manufactured......................$311040 less inventory,may31(2400 units).......................... 51840 ******************* varible cost of goods sold ............................... 259200 ********************* manufacturing margin.............................................$388800 variable selling and administration expenses.................. $168000 ************************* contribution margin ...............................................$220800 fixed costs: fixed manufacturing costs......$64800 fixed selling and administration expenses.....$51840 $116640 -------------- ------------ income from operations......................................$ 104,160 Prepare an income statement under absorption costing. Enter all amounts as positive numbers. TRENDWEST OFFICE EQUIPMENT COMPANY Absorption Costing Income Statement For the Month Ended May 31, 2010 ----------------------------------------------------------------------------------- Sales ------------------- Cost of goods sold: ----------------- Cost of goods manufactured ------------- Less inventory, May 31 ------------ Cost of goods sold ---------- Gross profit ----------- Selling and administrative expenses ----------- Income from operations