The following information is provided from Carrington Corp. for the months of May and June:

May

June

Units Produced

$36,000$

$40,000$

Units Sold

$28,500$

$41,500$

Direct Material

$$263,000$

$$278,000$

Direct Labor

$$97,000$

$$100,000$

Variable MOH

$$47,000$

$$52,000$

Fixed MOH

$$185,000$

$$185,000$

Variable Selling$/$Admin

$$68,000$

$$74,000$

Fixed Selling$/$Admin

$$77,000$

$$77,000$

Sales Revenue

$$710,000$

$$795,000$

ROUND ALL NUMBERS TO TWO DECIMAL POINTS

Prepare the June income statement using Variable Costing $8$ pts

Prepare the June Income statement using Absorption Costing. Assume ending inventory in May is sold in June. $11$ points

Explain the difference in recognized net income. $5$ points