Summarized data for Walrus Co. for its first year of operations are: Sales (100,000 units) $5,000,000 Production Costs (120,000 units): Direct Material 1,680,000 Direct Labor 1,440,000 Manufacturing Overhead: Variable 840,000 Fixed 240,000 Selling and Administrative Expenses: Variable 250,000 Fixed 440,000 A. Prepare an income statement under absorption costing. 5,000,000 Walrus Co. Absorption Costing Income Statement Sales Cost of Goods Sold: Direct Material 1,680,000 Direct Labor 1,440,000 Variable Overhead 840,000 Fixed Overhead 240,000 4,200,000 700,000 700,000 X Ending Inventory Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses 1,080,000 X Net Income B. Prepare an income statement under variable costing. 5,000,000 Walrus Co. Variable Costing Income Statement Sales Variable Cost of Goods Sold: Direct Material 1,680,000 Direct Labor 1,440,000 Variable Overhead 840,000 3,960,000 660,000 700,000 X Ending Inventory Total Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin Fixed Expenses: Fixed Manufacturing Overhead Fixed Administrative Expenses Net Income