Ramon Co reported the following units of production and sales for June and July 2014:

Produced Sold

June 2014 100000 90000

July 2014 100000 105000

Net income under absorption costing for June was $40000, net income under variable costing for July was $50000. fixed manufacturing costs were $600000 for each month. Ramon Co uses actual costing.

How much was net income for July using absorption costing

A. $50000

B $20000

C $80000

D $40000

What is the answer to this problem and please explain in detail how you came up with the answer. I do not understand how to come up with the answer without going through a whole absorption costing income statement. Thank you