Please help!!

Variable and absorption costing, explaining operating-income differences.Amazing Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, Feburary, and March 2014 are as follows:

Unit data	JAN	FEB	MARCH
Begininng inventory	0	150	150
Production	1000	925	1040
Sales	850	925	1055
Variable Costs
Maufaturing cost per unit produced	750	750	750
Operating (marketing) cost per unit sold	625	625	625
Fixed Costs
Maufacturing costs	390000	390000	390000
Operating (marketing) costs	180000	180000	180000

The sellig price per unit is $2,800. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000 units. There are no price, efficency, or spending variances. Any productin0volume variance is written off to cost of goods sold in the month in which it occurs.

1. Prepare income statements for Amazing Screen in January, February, and March 2014 under (a) variable costing and (b) absoption costing

2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Begin by preparing a numerical reconciliation and explination of the difference between operating income for each month under variable costing and absorption costing.

Absorption--Costing operating income ---- Variable Costing operating income = ______ - ______

Jan _______ - _______ = __________ - ___________

Feb

March

The Difference between absoprtion and variable costing is due soley to moving _____ into inventories as inventories ____ and out of inventories as they ____