Summarized data for Walrus Co. for its first year of operations are: $5,000,000 Sales (100,000 units) Production Costs (120,000 units): Direct Material 1,680,000 Direct Labor 1,440,000 Manufacturing Overhead: Variable 900,000 Fixed 240,000 Selling and Administrative Expenses: Variable 260,000 Fixed 430,000 A. Prepare an income statement under absorption costing. Walrus Co. Absorption Costing Income Statement Sales 5,000,000 Cost of Goods Sold: Direct Material 1,680,000 Direct Labor 1,440,000 | 0 Variable Overhead 900.000 Fixed Overhead 240,000 4,260,000 Ending Inventory Total Cost of Goods Sold Gross Profit A 740.000 x Selling and Administrative Expenses 690.000 Net Income Walrus Co. Variable Costing Income Statement Sales 3,000,000 Variable Cost of Goods Sold: Direct Material 1,680,000 Direct Labor 1,440,000 Variable Overhead 900,000 4,020,000 Ending Inventory Total Variable Cost of Goods Sold 740,000 X Variable Selling Expenses 260,000 Contribution Margin Fixed Expenses: Fixed Manufacturing Overhead 240,000 Fixed Administrative Expenses 430.000 Net Income $