problems: Series A PR 20-1A 2. Income from operations 5868,000 Absorption and variable costing Income statements Obj. 1,2 During the first month of operations ended August 31, Kodiak Frideration Company man factured 80,000 mini refrigerators, of which 72,000 were sold Operating data for the month are summarized as follows: 510.800.000 SHOW ME HOW Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses. Variable Fixed 56,400,000 1,600,000 1,280,000 320,000 9,600,000 $1,000,000 180,000 1.260,000 Instructions 1. Prepare an income statement based on the absorption costing concept. 2. Prepare an income statement based on the variable costing concept. 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2)