Rhys Company Income Statement Absorption Costing For the Month Ended July 31, 2016 1 Sales (36,000 units) 2 Cost of goods sold $3,120,000.00 3 Cost of goods manufactured 4 Less ending inventory (24000 units) 624 000.00 5 Cost of goods sold 6 Gross profit 7 Selling and administrative expenses 8 Income from operations $4,440,000.00 2,496,000.00 $1,944,000.00 288,000.00 $1.656,000.00