Tudor Manufacturing Co. has prepared the following income statement based on the variable cost concept on June 30, 2016, the end of its first month of operation:

Tudor İmalat A.Ş.

Income Statement - Variable Costing

For the Month Ended 30 June 2016

1	Sales (405,000 units)		6.385.000,00 $
2	Variable cost of goods sold:
3	Variable cost of goods produced (500,000 units × $12 per unit)	6.000.000,00 $
4	Less finished inventory (95,000 units × $12 per unit)	1.140.000,00
5	variable cost of goods sold		4.860.000,00
6	Production margin		1.525.000,00 $
7	Variable selling and administrative expenses		88.000,00
8	Contribution margin		1.437.000,00 $
9	Fixed costs:
10	Fixed production costs	140.000,00 $
11	Fixed selling and administrative expenses	68.000,00	208.000,00
12	income from operations		1.229.000,00 $

	Necessary:
A.	Prepare an absorption cost income statement.
B.	Reconcile the $1,229,000 variable cost revenue from operations with the absorption cost revenue from the operations identified in (A)