Save & Tran Hayek Bikes prepares the income statement under variable costing for its managerial reports, and prepares the income statement under absorption costing for external reporting. For its first month of operations, 350 bikes were produced and 225 were sold, this let 125 bikes in ending inventory. The income statement information under variable costing follows Sales (22501,775) Variable product cost (2258600) 13 Variable selling and administrative expenses (225 655) Contribution margin Fixed overhead cost Fixed selling and administrative expense Net income $399,375 135,000 13,375 252,000 52,500 85,000 $114,500 1. Prepare this company's income statement for its first month of operations under absorption costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under absorption costing. Sales Less: Cost of goods sold Variable product costs Fixed overhead costs KENZI KAYAKING Absorption Costing Income Statement < Prev 5 of 10 Next >